Understanding LMITO - Low and Middle Income Tax Offset
The Low and Middle Income Tax Offset (LMITO) is a tax rebate provided by the Australian government for individuals on lower and middle incomes.
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LMITO provides individuals who earn wihtin specific earning threshold with a tax rebate. The LMITO tax threshold and LMITO tax rebate amount are set by the Australian Government and can vary each year though is currently scheduled to be inclusive if salary after tax calculations until 2022.
LMITO is gradually phased out as individuals earn more, the aim being to allow a steday decrease in the tax rebate so that workers do not suffer financially for earning more. the phased out approach for LMITO also ensures that people are motivated to work and earn more and not caught in a financial earnings trap.
Low and Middle Income Tax Offset (LMITO) Income Tax Rates and Thresholds
You can find the latest Low and Middle Income Tax Offset (LMITO) tax rates and thresholds in the Austrlia Income Tax Tables.
You can calculate how Low and Middle Income Tax Offset can affect your tax payments and salary calculation here, Low and Middle Income Tax Offset is automatically calculated as part of the Australia Salary after tax calculation.
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