Low Income Tax offset Explained (LITO)
The Low Income Tax Offset (LITO) is a tax rebate provided by the Australian government for individuals on lower incomes.
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LITO provides individuals who earn less than a specific earning threshold with a tax rebate. The LITO tax threshold and LITO tax rebate amount are set by the Australian Government and can vary each year.
LITO 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 LITO also ensures that people are motivated to work and earn more and not caught in a financial earnings trap.
You can calculate how Low Income Tax offset can affect your tax payments and salary calculation here, simply select the advanced tax calculator and enter your Low Income Tax offset details
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