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).

Super for beginners, part 25: Is super worthwhile if I’m earning less than $37,000?

Q: Great site! Lots of excellent information. I now work part-time, earning just under $37,000, and wondered whether I should bother with super. I am pretty sure I will get the Age Pension, and based on my income I reckon I would be better to save outside super and pay less tax, rather than have my … [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?I’m not certain if you’re asking:whether you pay any tax at all when you use your income to make super … [Read more...]

Australian income tax rates for 2016/2017 and 2015/2016 years

The Australian income tax rates applicable for the 2016/2017 financial year, and the 2015/2016 and 2014/2015 financial years 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, … [Read more...]

SAPTO: Cutting seniors tax via super contributions not possible

Q: I am attempting to work out when the 32.5% tax rate applies to both my wife and my own incomes for the 2015/2016 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 32.5% tax rate … [Read more...]

No income tax cuts for 2015/2016 year

Planned tax cuts for the 2015/2016 year were killed off in 2013, even though average income earners are rapidly moving into higher tax brackets due to ‘bracket creep’. Even if income tax cuts are a dead duck in the short term, by failing to regularly index the marginal income tax rate thresholds in … [Read more...]

No tax in retirement because you SAPTO (updated rates)

This article is updated annually with new rates, or updated periodically to highlight changes (if any) to the Seniors & Pensioners Tax Offset (SAPTO) rules. This article includes SAPTO rates for the 2015/2016, 2014/2015, 2013/2014, and 2012/2013 years, and SATO rates for the 2011/2012, … [Read more...]

Guest contributor: Turning 65 – Do you still need a SMSF?

This article is written by Bruce Sutherland, a regular SuperGuide reader, a self-funded retiree and now ex-SMSF trustee. Bruce is a former CEO, and a former strategy consultant, and he holds a degree in Economics. Bruce has closed his SMSF because he believes that a SMSF is no longer tax-effective … [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...]