Tax Offsets and Rebates

Here is where you will information relating to the various income tax rebates and offsets for the current financial year. There are often plenty of changes ahead and you can find updates about these here too.

For information on tax offset rates and eligibility in the past, try looking in the Historical Tax Information category.

Understanding Tax Offsets & Rebates

The purpose of tax offsets and rebates is to provide tax relief for people who’s situation may make the full payment of tax difficult (either because of low income or excessive expenses). ‘Tax offset’ is one of those terms that was difficult enough to understand when they were all named ‘rebate’, but the Tax Office […]

Low Income Tax Offset 2016-17

Like all tax offsets, the Low Income Tax Offset (LITO) reduces the amount of income tax payable on your taxable income. LITO can only reduce your tax liability to zero and so any unused portion is not refundable or transferable. You do not need to apply for the Low Income Tax Offset; if you qualify, […]

Private health insurance rebate: FAQs

By now, most people would know that the private health insurance rebate is being income-tested – effectively meaning that if you have private health insurance, the rebate you are entitled to receive depends on your annual income, your age and the number of dependent children you have. The table at the end of this article […]

Private Health Insurance Tax Rebate 2016-17

A person who is considered a resident for tax purposes who has paid premiums to a registered health fund for appropriate private health insurance is eligible for a tax rebate, a direct payment or reduced health insurance premiums. The majority of people tend to opt for reduced premiums. The 2012-13 year saw the introduction of varying income-tested […]

Seniors and Pensioners Tax Offset 2016-17

The Seniors and Pensioners Tax Offset (SAPTO) replaces the previous Senior Australians Tax Offset and the Pensioner Tax Offset. It is based on your ‘rebate income’ . Am I eligible for the Seniors and Pensioner Tax Offset? Generally, the Seniors and Pensioner Tax Offset it is available to a taxpayer who: is eligible for a pension, […]

Senior Australians & Pensioner Tax Offset explained

After working (and paying taxes) for most of your life, it can be a good feeling to get to that stage of your life where it’s time to get some pay-back from the taxman. Your golden years can be given an extra glow by claiming the Senior Australians and Pensioner Tax Offset (SAPTO), if you […]

Beneficiary Tax Offset 2016-17

The Beneficiary Tax Offset (BTO) may be available to a taxpayer who receives certain Centrelink benefits and Commonwealth education allowances. These are called the “taxable benefit”. Common taxable benefits that qualify for the offset include: Austudy, CDEP, Mature Age Allowance, Newstart Allowance, Parenting Payment (partnered), Partner Allowance, Sickness Allowance, Special Benefit, Widow Allowance and Youth Allowance. […]

Medical Expenses Tax Offset 2016-17

The Net Medical Expenses Tax Offset is being phased out. It is important to note that this offset is only available to taxpayers in the 2016 year in respect of expenses related to disability aids, attendant care and aged care. Net medical expenses refers to the actual out-of-pocket dollar amount (you need to deduct any […]

Spouse Super Contribution Tax Offset 2015-16

The Spouse Super Contribution tax offset applies to non-concessional contributions made by a taxpayer to a Complying Superannuation Fund or Retirement Savings Account in respect of their low-income earning or non-working spouse (married or de facto). How much is the Spouse Super Contribution Tax Offset? For the 2015-16 year, the amount of the spouse super contribution tax offset […]

National Rental Affordability Tax Offset 2015-16

The National Rental Affordability Scheme (NRAS) is a 2007 Federal election commitment designed to encourage large-scale investment in affordable housing. The NRAS offers tax incentives to providers of new dwellings on the condition that they are rented to low and moderate income households for at least 20% below market rates. Generally, eligible tenants are those whose […]