LITO
$325.00
SAPTO
$0.00
Total Offsets
$325.00
Effective tax-free threshold: $22,500.00
| Taxable Income | LITO Amount | Phase |
|---|---|---|
| Up to $37,500.00 | $700.00 | Full |
| $37,500.00 -- $45,000.00 | Reduces by 5c/$1 | Phase 1 |
| $45,000.00 -- $66,667.00 | Reduces by 1.5c/$1 | Phase 2 |
| $66,667.00+ | $0.00 | None |
Low Income Tax Offset (LITO)
LITO provides up to $700.00 tax reduction for low-to-middle income earners. It is available in full for incomes up to $37,500, then phases out in two stages until it reaches zero at $66,667. LITO is a non-refundable offset -- it can reduce your tax to zero but cannot create a refund on its own.
Seniors and Pensioners Tax Offset (SAPTO)
SAPTO is available to eligible seniors and age pensioners. Singles can receive up to$2,230.00 and couples up to $1,602.00 each. Combined with LITO, SAPTO effectively raises the tax-free threshold for seniors to around $33,532 (singles) or $28,974 (couples, each).
Effective tax-free threshold
While the statutory tax-free threshold is $18,200, the combination of LITO (and SAPTO for seniors) means you effectively pay no tax until a higher income level. For non-seniors, the effective tax-free threshold is approximately $24,000.
ATO-Aligned: Offset amounts and thresholds are for the 2025-26 financial year. Other offsets (e.g., zone tax offset, invalid carer offset) are not included.
Disclaimer: This calculator provides estimates based on current ATO rates and thresholds for the 2024–25 financial year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax agent before making financial decisions. Read our terms
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