Australian Tax Offsets

/Australian Tax Offsets
Australian Tax Offsets2018-11-07T08:26:52+00:00

Australian Tax Offsets

LOW INCOME TAX OFFSET

2012-2017
$

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%
Since 2012 year LITO has not been available to offset tax for minors on unearned income such as trust distributions.
 

INCOME
$

OFFSET
2013-2017
$

OFFSET
(?)
$

20,000 445.00 300
25,000 445.00 300
30,000 445.00 300
32,500 445.00 300
35,000 445.00 300
37,000 445.00 300
40,000 400.00 270
42,500 362.50 245
45,000 325.00 220
47,500 287.50 195
50,000 250.00 170
52,500 212.50 145
55,000 175.00 120
57,500 137.50 95
60,000 100.00 70
62,500 62.50 45
65,000 25.00 20
67,500 0 0

SENIOR AND PENSIONERS TAX OFFSET

2012-2013 to 2016-2017

Maximum Offset *
$

Shadeout Threshold
$

Income at which Offset Cuts Out
$

Single 2,230 32,279 50,119
Couple (each) 1,602 28,974 41,794
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

2016-2017

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

Description

Amount of Offset
$

Income Threshold
$

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.


Other Australian Tax Rates and HECS Repayment rates

Superannuation Rates, Thresholds and Limits