What Changed? 

From 1 July 2018
A low and middle income tax offset (LMITO), first introduced in the 2018-19 Federal Budget, provides a tax benefit to those with taxable incomes below $125,333.
Recent changes increase the LMITO from a maximum of $530 to $1,080 and the base amount from $200 to $255, and make it applicable to a greater number of taxpayers by increasing the threshold from $125,333 to $126,000.
 
The first thing to remember is that this is a tax offset;
Tax Tip - you need to owe tax to offset the tax. And, if you owe tax, the offset will be first used to reduce the tax you owe.
It is not a cash back – a point the ATO is at pains to point out stating on its website that, “It doesn't mean that you will get an extra $1,080 in your tax return.”
 
The offset applies for a limited time. In this case, the offset applies to the 2018-19, 2019-20, 2020-21 and 2021-22 income years.
So, if you are eligible to receive the offset, it applies to the taxable income you earned last financial year (2018-19) and you will receive any offset owing once you have lodged your tax return.

Taxable income*

Offset minimum

Offset maximum

<$37,000

$255

$255

>$37,000 - <$48,000**

$255

$1,080

>$48,000 - <$90,000

 

$1,080

>$90,000 - <$126,000***

 

$1,080

$126,000+

$0

$0

* Your taxable income is the income you earn less any deductions you claim - not your salary.
** offset entitlement is $255, plus 7.5% of the excess to a maximum of $1,080.
*** offset entitlement is $1,080, less 3% of the excess on taxable income above $90,000.

For quarterly BAS, generally the 28th day after the quarter-end. However, if you lodge through us you are automatically given a 2-week extension. Monthly BAS...

For our clients, tax returns are due March/April/May of the following year. For example, the deadline for 08/09 returns would be March/April/May 2010.

For quarterly payments: to get a tax deduction and no penalty the due date is the 28th day following the previous quarter-end.

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