How To Offset Tax?
We have provided a common list of tax offsets available to many Australian and New Zealand tax residents. In an easy to read format so you don’t have to be a genius to understand tax offsets.
The hardest thing in the world to understand is the income tax.
– Albert Einstein
Low and Middle Income Tax Offset (LMITO)
Reduces your tax payable $1 for $1 till the tax payable/owed is $0 and is not a refundable amount.
Low Income Tax Offset (LITO)
LITO is based on your taxable income and once your tax payable is $0 it stops. LITO is not a bonus payment.
Zone Tax Offset
Reduces your tax liability $1 for $1. Unlike many other offsets, it increases by the number of dependants.