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 the 2014/2015 year, (and for 2013/2014 year)   Super Guide

The tax rates applicable for the 2014/2015 year and future years are set out in the tables below. We have also included the tax rates for the 2013/2014, 2012/2013 and 2011/2012 years (including the low-income threshold for the Medicare levy) at the end of the article, for your reference and convenience.

No tax in retirement because you SAPTO (updated figures)   Super Guide

This article includes SAPTO and SATO rates for the 2013/2014, 2012/2013, 2011/2012, 2010/2011, 2009/2010 and 2008/2009 years.

Say goodbye to 2015/2016 income tax cuts   Super Guide

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 longer going to happen.

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

A regular SuperGuide reader, Bruce Sutherland, explains why he believes a SMSF is no longer tax-effective for his wife and himself after the age of 65.

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

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?

Federal Budget May 2012: At a super glance   Super Guide

On 8 May 2012, Federal Treasurer Mr Wayne Swan released the 2012/2013 Federal Budget promising to deliver a $1.5 billion surplus.

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.”

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 applies.

On 2 May 2010, Federal Treasurer effectively released a mini-budget (in response to the Henry Tax Review) announcing the following changes; Increase in Superannuation Guarantee(SG) from 9% to 12%; Tax refund in the form of a Government super contribution to lower-income earners…