End of the Lamington (LMITO)

Next year's tax return may look a little different to previous years for low and middle-income earners, with an end to the Low-Middle Income Tax Offset (LMITO)

How did the LMITO Work?

The LMITO acts as an offset, meaning that it reduces the tax you pay (known as your tax payable) on your taxable income. Your taxable income is your total income minus any deductions you claim.

In your 2021-22 tax return, nothing additional had to be completed for you to recevie the low and middle-income tax offset.

If you taxable income was $18,201 or more, the Australian Taxation Office works out how much tax you need to pay based on what you have earned.

The low and middle-income tax offset was not a cash refund. If you didnt pay any tax during the year, you wouldn't get the low and middle-income tax offset.

Offsets are not used to reduce your Medicare levy & Medicare levy surcharge (if there is any). The LMITO did not affect this part of your tax return.

What does this mean for next year?

While the LMITO will not be avaliable for the 2022-23 income year, the Low Income Tax Offset (LITO) may still be avaliable (pending any further rulings or changes). This will automatically be applied by the ATO after you lodge your tax return next year.

The amount of the low-income tax offset (LITO) you receive will depend on your taxable income.

If your taxable inome is;

$37,500 or less

you will get the maximum offset of $700

between $37,501 and $45,000,

you will get $700 minus 5 cents for every $1 above $37,500

between $45,001 and $66,667,

you will get $325 minus 1.5 cents for every $1 above $45,000

Consulting with a tax agent or professional like us can be of great assistance for tax returns and preparation for the coming year, particularly regarding any offsets or deduction you may be eligible for.

Why not start a conversation with us today?

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Farewell Deryn

By Jodie Cunningham • 08 Sep, 2023

Deryn worked for Logan & Hall for over 32 years. She was originally employed in an administration role which she continued to do until she left in 1984 to start her family having children Jane and then David. Deryn returned to Logan & Hall in around 1990 as the Office Manager where she also completed some accounting courses. Deryn eventually went onto managing all the office Self-Managed Super Funds including preparation and lodgement of these returns. During her time at Logan & Hall, Deryn built strong relationships with her clients and will be missed by them we’re sure. Outside of work, Deryn is also well known in the Swan Hill Community with her involvement with the Swan Hill Show and Swan Hill Women in Racing. Deryn could also be found on the golf course. You may have even shared a glass or two of bubbles with Deryn along the way. We treasure the many years we have had with Deryn both at work and personally. She will be missed around the workplace, but we will be keeping in touch. Deep will now be managing the Self-Managed Super Funds and can take care of any queries you may have.

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