As part of the 2022 Federal Budget, the government announced a one-off $420 ‘cost of living tax offset’ for 2021-22, which effectively increases the maximum offset for the Low and Middle Income Tax Offset (LMITO) from $1,080 to $1,500.
The table below shows the value of tax relief from the increased LMITO for the 2021-22 financial year.
| Taxable income | Value of tax relief |
| Up to $37,000 | $675 |
| $37,001 to $48,000 | Between $675 and $1,500 |
| $48,001 to $90,000 | $1,500 |
| $90,001 to $125,999 | Between $420 and $1,500 |
Remember, because it’s a tax offset, it can only be used to lower your tax bill and can’t be used to generate a tax refund or pay your Medicare levy.
Many thanks to The Team at Letizia Palmer for this table. Level 1, 544 Beaufort Street, Mt Lawley WA 6050