Australian Tax Offsets
LOW INCOME TAX OFFSET
Announced but not passed
|Amount of Offset||445||300|
|Taxable Income when offset starts reducing||37,000||37,000|
|Taxable income when offset ceases||66,667||67,000|
|Reduction in offset for income over $37,000||1.5%||1.0%|
SENIOR AND PENSIONERS TAX OFFSET
2012-2013 to 2016-2017
Maximum Offset *
Income at which Offset Cuts Out
|Couple (separated due to illness – each)||2,040||31,279||47,599|
Rebate reduces by 12.5c for each $1 of taxable income above the shade-out threshold.
SMALL BUSINESS TAX OFFSET
This offset is based on the proportion of tax payable on net small business income earned. It is calculated by first working out the percentage that the small net business income for the year is of the total taxable income. The total tax payable for the year is then multiplied by this percentage.
The tax offset is calculated by multiplying the tax payable on small business income by 5%. There is a maximum small business income tax offset of $1,000.
OTHER TAX OFFSETS
2016 – 2017
Amount of Offset
Cut Off Threshold
|Mature Age Workers Tax Offset*||0||N/A||N/A|
|Dependent Spouse *||0||N/A||N/A|
|Dependant Invalid and Carer Tax Offset **||2,627||282||10,790|
|Superannuation pension tax offset||15%|
As a result of the 2014/15 Federal budget being passed this offset was be abolished from July 1, 2014.
** The government in phasing out the ability to claim a tax offset for a dependent spouse introduced this new offset for a depednant who cannot work as a result of not being able to work because of carer obligations.
MEDICAL EXPENSE TAX OFFSET (VERY LIMITED)
2016 to 2018
The offset is limited to out-of-pocket medical costs relating to disability aids, attendant care or aged care expenses until 1 July 2019.