A new tax offset LAMITO will be introduced from 1 July 2018 for Low and Middle income earners (Australian residents).
What is LAMITO
The Low and Middle Income Tax Offset (LAMITO) will provide an additional offset
- Up to $200 if you earn less than $37,000,
- if you earn more than $37,000, but less than $48,000, you will receive LAMITO of between $200 and $530
- if you earn more than $48,000 or more and up to $90,000, you will receive maximum LAMITO of $530
- if you earn more than $90,000 and up to $125,333, your LAMITO will gradually reduce from $530 to $1
LAMITO will only be in operation for 4 years – From 1 July 2018 until 30 June 2022. At this point, further income tax reductions will absorb the LAMITO.
Source: CCH (Treasury Laws Amendment (Personal Income Tax Plan) Bill 2018; Budget paper No. 2, p 33)