Who Is Eligible For The Seniors And Pensioners Tax Offset ?

Seniors and pensioners tax offset (SAPTO) is a tax offset that’s available to eligible seniors and pensioners in Australia. It can reduce or even totally reduce a recipient’s tax liability to zero. However, they can’t generate you a tax refund. SAPTO is designed for low-income and elderly Australians. In order to qualify for the tax offset, you must pass few conditions relating to your age; income and eligibility for this tax offset.


 1. Meet the Age requirement:

  • seniors and pensioners who, at the end of the relevant financial year, are 65 years and six months of age or older (for example, to be eligible for the year ending 30 June 2019, an employee must be born on or before 31 December 1953)
  • veterans receiving a service pension and/or war widows/widowers receiving an income support supplement from the Department of Veterans’ Affairs who are at least 60 years of age.


2. Income

You meet this condition if any of the following applied to you in 2017–18

  • you did not have a spouse, and your rebate income was less than $50,119
  • you had a spouse, and the combined rebate income of you and your spouse was less than $83,580
  • at any time during the year you and your spouse had to live apart due to illness or because one of you was in a nursing home, and the combined rebate income of you and your spouse was less than $95,198.

Rebate income threshold amounts are indexed each year. Depending on your rebate income, you may receive a full, partial or nil offset amount.

If you have a spouse, you will be tested on your combined rebate income for the SAPTO eligibility. The amount of the tax offset is based on your individual rebate income. In some cases, if you are both eligible for SAPTO, you may be able to transfer your spouse’s unused offset to you. If you require any assistance, please contact our Business Mantra experts on (08) 9242 3555 or email us at info@businessmantra.com.au. We shall be glad to serve you.

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