Seniors and Pensioners Tax Offset (SAPTO)
1 July 2019 – 30 June 2020
Criteria | Singles | Couples (each) |
Income assessed | Rebate income – see rebate income | |
Maximum offset | $2,230 | $1,602 |
Shade-out threshold | $32,279 | $28,974 |
Cut-out threshold | $50,119 | $41,790 |
Rate of reduction | $0.125 per $1.00 above shade-out threshold | |
Eligibility criteria | Either: l reached Age/Service Pension age, and l meet eligibility requirements for a Government pension or similar Or l receiving certain taxable Government payments | |
Spouse contribution tax offset
Criteria | 2019/20 |
Income assessed | Based on spouse’s: l assessable income l reportable fringe benefits total l reportable employer superannuation contributions – see page 91 |
Less than $37,000 | 18% of the lower of: l total spouse contributions for the income year; and l $3,000 |
$37,000 – $39,999 | 18% of the lower of: l total spouse contributions for the income year; and l $3,000 – (receiving spouse income – $37,000) |
$40,000 and above | Nil |
Eligibility criteria | Spouse must not have: l excess non-concessional contributions for the financial year l a total superannuation balance (see page 91) that equals or exceeds the general transfer balance cap (see page 60) as at 30 June of the prior financial year |
Low Income Tax Offset (LITO)
From 1 July 2022, the existing LITO and new low and middle income tax offset (LAMITO, see below) will be merged into a new LITO.
Thresholds based on taxable income |
2019/20 |
2022/23 |
Income assessed | Taxable income | |
Max offset | $445 | $700 |
Shade-out threshold 1 | $37,000 | $37,500 |
Rate of reduction above threshold 1 | $0.015 per $1.00 above $37,000 | $0.05 per $1.00 above $37,500 |
Shade-out threshold 2 |
N/A | $45,000 |
Rate of reduction above threshold 2 | $0.015 per $1.00 above $45,000 | |
Cut-out threshold | $66,667 | $66,667 |
70% of LITO entitlement is delivered through regular pay. The remaining 30% is paid as a lump sum on assessment of the taxpayer’s income tax return.
Low and Middle Income Tax Offset (LAMITO)
LAMITO is a new non-refundable tax offset that was introduced with effect from 1 July 2018 until 30 June 2022. Entitlement to LAMITO is in addition to the existing LITO.
Criteria | 1 July 2019 – 30 June 2022 |
Income assessed | Taxable income |
Eligibility criteria | Individual must: l be an Australian resident l have taxable income less than $126,000 |
Taxable Income | LAMITO Entitlement |
$0 – $37,000 | $255 |
$37,001 – $48,000 | $255 plus $0.075 per $1.00 of income above $37,000 |
$48,001 – $90,000 | $1,080 |
$90,001 – $126,000 | $1,080 reduced by $0.03 per $1.00 of income above $90,000 |
More than $126,000 | Nil |
Private health insurance rebate
1 April 2019 – 31 March 2020
The private health insurance rebate is means tested based on a taxpayer’s income for surcharge purposes (see page 91). The amount of private health insurance rebate will be reduced where income is above the Medicare levy surcharge thresholds.
Income thresholds are typically indexed on 1 July with AWOTE. However, indexation is paused until 30 June 2021. The rebate percentage is adjusted annually on 1 April.
Income for surcharge purposes | Private health insurance rebate | |||
Singles | Families (combined income) | Under 65 | 65 – 69 | 70+ |
Up to $90,000 | Up to $180,000 | 25.059% | 29.236% | 33.413% |
$90,001 – $105,000 | $180,001 – $210,000 | 16.706% | 20.883% | 25.059% |
$105,001 – $140,000 | $210,001 – $280,000 | 8.352% | 12.529% | 16.706% |
Above $140,000 | Above $280,000 | 0% | 0% | 0% |
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