Low and middle income earners

If you are an Australian resident for income tax purposes and you pay tax on your taxable income, you may be eligible for both the:

  • low income tax offset
  • low and middle income tax offset.

You don’t have to do anything to claim the offsets. We will work them out for you when you lodge your tax return.

Tax offsets reduce the amount of tax payable on taxable income. These are non-refundable offsets, so the following applies:

  • any eligible offset amount can only reduce your tax payable to zero, any unused offset amount can’t be refunded
  • it can’t reduce your Medicare levy.

If you are under 18 as at 30 June of the income year and you have unearned income, these offsets can’t reduce the tax payable on this income.

 

Low income tax offset

If your taxable income is less than $66,667, you will get the low income tax offset.

The maximum tax offset of $445 applies if your taxable income is $37,000 or less. This amount is reduced by 1.5 cents for each dollar over $37,000.

Low and middle income tax offset

If your taxable income is less than $126,000, you will get some of the low and middle income tax offset. The maximum offset is $1,080 per annum. The base amount is $255 per annum.

The amount of the offset you are entitled to will depend on your individual circumstances, such as your income level and how much tax you have paid throughout the year.

In other words, you might not be entitled to the full $1,080. You are not required to do anything to claim the low and middle income tax offset, we will work out how much you are entitled to and include it in your tax return.

The new low and middle income tax offset is available for the 2018–19, 2019–20, 2020–21 and 2021–22 income years and is in addition to the low income tax offset.

 

Source: Australian Taxation Office

Date: 2nd November 2019

 

If you require assistance lodging your taxation return, contact Coffs Coast Consulting on

(02) 5606 3692.

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I have never done may taxes before and Shannon has been exceptionally helpful. She gives informative details about not only how she can help but how you can help yourself in the future while also keeping you up to date on her progress. so thank you shannon for helping a young adult learn how to do adult things.read more
Kara Johnson
Kara Johnson
10:07 17 Oct 19
Shannon was recommended to me by a friend and did not disappoint. She effectively helped me complete my tax return, provided excellent tips on how to get a better return next year & did it all remotely from the other side of Australia! (I live on the west coast). The whole process was super easy and completed with minimal stress. HIGHLY RECOMMENDread more
Charlii McGuane
Charlii McGuane
06:16 09 Sep 19
I highly recommend Shannon and her professional services. She is extremely knowledgeable with all facets of accounting and tax law. Her passion for this industry is remarkable, up to date with a focus on providing the right advice to suit you situation.read more
X-press Print & Signs Coffs Harbour
X-press Print & Signs Coffs Harbour
10:12 27 Aug 19
Thank you Shannon for listening and helping me understand the ‘tax’ world! From someone that has received bad service previously, you are a light at the end of my tunnel. I highly recommend to choose Shannon for all your financial needsread more
Pauline Weller
Pauline Weller
04:42 23 Aug 19
Attention to detail and easy to contact any time I need help with turning the gears of my Company. As a born and raised local to the Coffs Coast myself, It's refreshing to be dealing with someone who understands our demographic. Makes a huge difference to have 'down to earth' conversations with a local. Thanks, Coffs Coast Consulting - would recommend to anyone in business!read more
Dale Price
Dale Price
19:00 19 Aug 19
I highly recommend Coffs Coast Consulting for anyone looking for a reliable, knowledgeable and approachable accountant. Shannon has been fantastic- helping to set up our business accounting and ensuring we are compliant with all regulations relating to tax, super and long service leave. Her vast experience in the industry shows!read more
Vicki Price
Vicki Price
09:35 19 Aug 19
Coffs Coast Consulting is a friendly and affordable tax service. Shannon is highly efficient and very professional, I would not hesitate to recommend this business.
kay winkler
kay winkler
08:07 17 Aug 19
Fantastic advice from Shannon, who allowed me to do the complete return from the comfort of my own home, convenient, helpful advice with a courteous and professional manner. . would recommend this service to everyone!
Tarlz M
Tarlz M
03:45 17 Aug 19
Coffs Coast Consulting helped me with my personal tax return this year. Shannon was very professional and knowledgable and made the process extremely simple. Wouldn't hesitate to recommend her.
Vicki Woods
Vicki Woods
05:17 14 Aug 19