Low and middle income earner tax offsets to be hit in 2023 financial year

The low and middle income tax offset (LMITO) ceased on 30 June 2022. As a result, low to middle income earners may see their tax refunds for the 2023 financial year and beyond, reduced by between $675 and $1,500.

For the 2023 financial year, you may be eligible for the low income tax offset (LITO) only, if you earn up to $66,667. The maximum amount of the LITO is $700, with a reduction applying for taxable incomes between $37,500 and $66,667, and reduces to nil above this higher threshold.