The Low and Middle Income Tax Offset (LMITO) is Over – What Does it Mean for You?
We all enjoy an extra boost in our tax refund, most recently from the low and middle income tax offset (LMITO) that helped boost refunds for millions of Aussie workers.
The government introduced LMITO in the 2018-19 tax year and increased in value in 2021-22 with an additional “cost of living tax offset”.
Unfortunately, the end has come for LMITO. The offset will no longer be available from the 2022-23 tax year (1 July 2022 – 30 June 2023).
For the 2022-23 income year (1 July 2022 – 30 June 2023), the low and middle income tax offset is no longer available. This means that your tax payable will be calculated at the full amount, without any reduction applied. Therefore, millions of Australians who received the offset and got bigger tax refunds in 2020, 2021 and 2022 will now pay more tax than they have in previous years.
In a nutshell: The end of the tax offset called LMITO means many Australian workers will get smaller tax refunds in 2023.
