Tax Return:: UPDATED! 2021-2022FY Low and Middle Income Tax Offset (LMITO)

Hello, this is your tax and super specialist, P&C Tax Professionals.

With the recent release of the 2022-23 Federal Budget, the government has announced new rates for the low and middle income earners which will take effect from 1 July 2022.

In line with the government’s attempt to offset the rising cost of living in Australia, Aussies will now get an additional $420 worth of tax relief for the 2022 financial year. This additional amount is on top of the previous LMITO rates that were in place prior to this year's Federal Budget announcement. Check out the updated LMITO rates which will apply to your 2022FY tax return.

However, this measure will unfortunately come to an end next year which would mean that those people who are earning up to $126,000 will actually be left with a tax rise once the LMITO ends.

Moreover, there is no need to apply for the LMITO as the exact LMITO amount you are eligible for will be calculated for you automatically when you lodge your tax return. As many of you may already be aware, tax offsets are in place to ultimately help reduce the amount of tax you have to pay not to help boost your tax refund. Which is the reason why the tax offset cannot surpass the total amount of tax that is payable for a given financial year.

Let’s finish it off here but if you have any questions or enquiries, feel free to contact us through our official Facebook Page (P&C Tax Professionals - Australia) or via our email address at pnctax@naver.com.

Thank you and bye for now!