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 tax tables below (lists the tax brackets and individual tax rates). We have also included the tax brackets and individual tax rates for the 2013/2014, 2012/2013 and 2011/2012 years at … [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...]