The Low Income Tax Offset in AustraliaThe Low Income Tax Offset is a rebate calculated, normally at the end of the tax year to ensure that people on a low taxable income pay little or no tax.
In the 2010-2011 income tax year, the Low Income Tax Offset effectively means that those who earn under $16,000 in the year will pay no tax,
The base calculation for this is: 2010-11 Low Income Tax Offset
- Incomes under $30,000 will be eligible for the full $1,500 LITO, this rebate reduces by 4 cents in every dollar that the income exceeds $30,000.
- Annual Income of $16,000 or under will pay no tax.
- This offset cuts out at an income of $67,500 in 2010-11
Those on low incomes, between $16,000 and $67,500 will therefore receive gradually reducing tax offset payments.
Details of this were given in the 2010 Australian Federal Budget Click here for link
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