Joined: Wed Jan 30 2008, 10:05AM Location: Queensland Posts: 301
The low income earners in Australia, as well as paying no tax on the first $6,000 of income, receive what is called a "Low Income Tax Offset" (LITO) rebate, normally at the end of the year, once they have submitted their tax return.
For the 2009-10 tax year, this was worth $1,350 to the lowest paid, meaning that those earning under $15,000 will pay no tax.
The value of the LITO reduced until at an income of $63,750 in 2009-10, the amount became ZERO.
In 2010-11 the offset increases to $1,500 and this means that meaning that those earning under $16,000 will pay no tax. This offset will be reduced until at an income of $67,500 in 2010-11, it becomes ZERO.
The reduction in the rebate applies at a rate of 4 cents per dollar earned.
