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LOW INCOME TAX OFFSET

30 June 2017

Conditions:

1. You must be an Australian resident for tax purposes.

2. Your taxable income must be < $66,667.

3. The government has amended the law to exclude minors.

If < 18 years old then the offset does not apply to 'unearned income'.

Minors with income from working can apply the low income tax offset to their wages.

 

Tax Offset Calculation:

NET TAXABLE INCOME       TAX OFFSET

< $37,000                                $445

> $37,000 < $66,667               $445  less (net income - $37,000) x 1.5 cents

> $66,667                                 Nil

 

INDIVIDUALS WITH TAXABLE INCOME UP TO $20,542 WILL PAY NO TAX

Individuals tax payable on $20,542 = ($20,542 - $18,200 (tax free threshold)) x 19 cents 

= $445 less low income tax offset $445 = Nil

 

Google ATO Low-income tax offset

Disclaimer
The information provided in the above documents is not intended to be, nor should it be construed as tax advice. Any specific recommendation for a client can only be done after their individual circumstances have been determined by David Douglas Accountants.

We have clients from the following locations:

Brisbane, Gold Coast, Sydney, Newcastle, Sunshine Coast, Cairns, Canberra, Melbourne, Adelaide, Perth, Darwin.

 

Brisbane, Albion, New Farm, Teneriffe, Newstead, Windsor, Wilston, Bowen Hills, Wooloowin, Herston, Lutwyche, Hamilton, Eagle Farm, Gordon Park, Fortitude Valley, Clayfield, Ascot, Hendra.

Morayfield, Burpengary, Caboolture, Bellmere, Wamuran, Narangba, North Lakes, Mango Hill, Kallangur, Dakabin, Deception Bay, Bribie Island, Elimbah, Kippa-Ring.

We do tax returns for individuals, trusts, companies, partnerships, contractors, ABNs and sole traders.

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