Tax Offsets

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.

Senior & Pensioner Tax Offset (SAPTO)

Essentially increases the amount a Senior & Pensioner can earn Tax-Free before they are liable for income tax.