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LITO and LMITO Estimator

Find out how much LITO reduces your 2025-26 tax bill. Note: LMITO ended 30 June 2022 and no longer applies.

Annual Income

Est. Low Income Tax Offset (LITO)

$ 0.00

FAQs

What is the Low Income Tax Offset (LITO) in Australia?

LITO is a tax offset that reduces the amount of income tax you owe. For 2025-26, the maximum offset is $700 for incomes up to $37,500. It phases out as income rises and disappears entirely at $66,667. It is permanent — not a temporary measure.

Is LMITO still available in 2025-26?

No. The Low and Middle Income Tax Offset (LMITO) ended on 30 June 2022. It does not apply from the 2022-23 income year onwards. Many Australians still search for it expecting a refund — there is none. Only LITO remains for low-income earners.

What is the difference between LITO and LMITO?

LITO is a permanent offset worth up to $700 for incomes under $66,667. LMITO was a temporary measure worth up to $1,080 that existed alongside LITO between 2018-19 and 2021-22. LMITO was not renewed after 30 June 2022. From 2022-23, only LITO applies.

Do I have to claim LITO in my tax return?

No. The ATO applies it automatically when you lodge your tax return. You do not complete a separate form or make a claim. Your tax agent or the myTax system handles it based on your income.

What does non-refundable mean for LITO?

LITO can reduce your tax liability to zero but it cannot create a refund. If your total income tax after other calculations is $300 and your LITO is $700, you pay $0 — but you do not get $400 back. The unused portion of the offset does not create a cash payment.

I earn two incomes. Does LITO apply to each one?

No. LITO is calculated on your total taxable income from all sources for the financial year — not per employer. If you work two jobs and earn $45,000 combined, LITO applies to $45,000 total. Only claim the tax-free threshold with one employer to avoid a tax debt at year-end.

Can working holiday makers claim LITO?

No. Working holiday visa holders (subclass 417 and 462) pay a flat 15% tax on their first $45,000 and are not entitled to LITO, the tax-free threshold, or most other offsets.

Is there an equivalent to LMITO for 2025-26?

Not currently. The Stage 3 tax cuts that took effect 1 July 2024 reduced the 16% bracket (down from 19%) and the 30% bracket (down from 32.5%), which benefit low and middle income earners by lowering their marginal rate rather than providing a separate offset.

What is the Low Income Superannuation Tax Offset (LISTO)?

LISTO is a separate payment of up to $500 made by the government into your super fund if you earn $37,000 or less and your employer has paid SG contributions. It is applied automatically — you do not need to claim it. It is not the same as LITO.

Why does accurate bookkeeping matter for LITO?

LITO is calculated on taxable income. If a client's transactions are miscoded and their income appears higher than it actually is, they may lose LITO entitlement unnecessarily. Ezyiah ensures transaction data is categorised correctly before it reaches your accounting software, so the income figure is right before it flows to the tax return.