Over the past few years, tax payers have enjoyed the benefits of Low income tax offset (LITO) and Low and middle income tax offset (LMITO). However, for the year ended 30 June 2023 (last tax year), the government has removed the LMITO offset, making it no longer available.

You would have received LMITO if your taxable income was less than $126,000 and were an Australian tax resident. The tax break that was available to tax payers topped out at $1,500. The cessation of this offset means that most tax payers will receive a lower refund or a higher tax bill when they lodge their 2023 Tax Return.

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