LMITO is finito

Written By Laurie Flynne CA

As we head into Tax Planning season, it is worth noting that another “stimulus” measure - the Low & Middle Income Tax Offset (LMITO) - will not be available in 2023.

LMITO was a “temporary” Liberal Government sweetener that offered a tax offset of up to $1,500 to individuals earning less than $126,000. It was legislated to expire on 30 June 2022, and the Albanese government has no appetite to extend it.

Because the LMITO was not reflected in PAYGW scales but rather offered as a “bonus” upon lodgement of a tax return, individuals can expect a lower tax refund (or higher tax payable) than in recent years. A valid anti-inflation device, perhaps?

Laurie Flynne CA https://www.linkedin.com/in/laurie-flynne
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