Low Income Tax Offset (LITO)

LITO stands for the Low Income Tax Offset – A tax offset available to all taxpayers on lower incomes.

Set out below are all SuperGuide articles explaining Low Income Tax Offset (LITO).

Australian income tax rates for 2015/2016 and 2014/2015 years


The tax rates applicable for the 2015/2016 financial year, and for the 2014/2015 financial year are set out in the tables below. We have also included the tax rates for the 2013/2014, 2012/2013 and 2011/2012 years at the end of the article, for your reference and convenience. Note: If you’re Age … [Read more...]

No tax in retirement because you SAPTO (updated rates)


This article is updated annually with new rates, or periodically to highlight changes (if any) to the Seniors & Pensioners Tax Offset (SAPTO) rules. This article includes SAPTO rates for the 2014/2015, 2013/2014, and 2012/2013 years, and SATO rates for the 2011/2012, 2010/2011, 2009/2010 and … [Read more...]

Say goodbye to 2015/2016 income tax cuts


Due to a budget blowout caused by “an over-hang from the global financial crisis and strong Australian dollar”, the federal government has informally announced (drip fed via a series of casual comments in various interviews) that the income tax cuts, that were to take effect from 1 July 2015, are no … [Read more...]

Super for beginners, part 3: Why aren’t my super contributions tax-free?


Q: I checked my statement and I put an extra $10 per week into my super and each time an amount is put in, it has been taxed. Is this right? I thought that my contributions were tax-free? A: I’m not certain if you’re asking: whether you pay any tax at all when you use your income to make … [Read more...]

Federal Budget May 2012: At a super glance


On 8 May 2012, Federal Treasurer Mr Wayne Swan released the 2012/2013 Federal Budget promising to deliver a $1.5 billion surplus. Mr Swan announced the following superannuation-related changes: Super contributions surcharge for high-income earners. Doubling of the contributions tax to 30% … [Read more...]

Is super tax effective for those earning less than $37,000?


Q: Great site! Lots of excellent information. However, I am not sure I agree with your comment "... if you earn less than $37,000 in a year (for the 2010/11 year), you have no real income tax advantages when investing via a superannuation fund." The tax payable on $37,000 (incl Medicare and low … [Read more...]

SATO: Cutting seniors tax via super contributions no longer possible


Q: I am attempting to work out when the 30% tax rate applies to both my wife and my own incomes for the 2010/2011 year. We are both 67 and operate a SMSF to which we can make concessional contributions, and I would like to reduce personal income to the point below which 30% tax rate … [Read more...]