The 2023-2024 Budget did not announce any extension of the low and middle income tax offset (LMITO) beyond the 2021-2022 income year. The LMITO has now ceased and been fully replaced by the low income tax offset (LITO).

With no extension of the LMITO announced in this Budget, 2021-2022 was the last income year that the offset was available.

As a result, low-to-middle income earners may see their tax refunds from July 2023 reduced by between $675 and $1,500 (for incomes up to $90,000 but phasing out up to $126,000), all other things being equal.

CategoryTax Updates

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