Private Health Insurance Rebate
Eligibility: Based on income and age.
Calculation: Rebate percentage varies according to age and income thresholds.
Senior Australians and Pensioners Tax Offset (SAPTO)
Eligibility: Eligible seniors and pensioners can reduce their tax payable.
Calculation: The offset amount depends on individual circumstances.
Offset/Rebate | Criteria |
|---|---|
Private Health Insurance Rebate | Based on income and age. |
Senior Australians and Pensioners Tax Offset (SAPTO) | Eligible seniors and pensioners. |
Low Income Tax Offset (LITO)
The Low Income Tax Offset (LITO) reduces tax payable for individuals with lower incomes.
For the financial year 2024, LITO applies to:
Taxable income up to $37,500: Maximum offset of $700.
Taxable income between $37,501 and $45,000: Offset reduces by 5 cents for every dollar over $37,500.
Taxable income between $45,001 and $66,667: Offset reduces by 1.5 cents for every dollar over $45,000.
Example: Offsets & Rebates
Scenario: Lisa qualifies for the following offsets:
Private Health Insurance Rebate: $300
SAPTO: $1,500
Offset | Amount |
|---|---|
Private Health Insurance Rebate | $300 |
SAPTO | $1,500 |
Total Offsets | $1,800 |
Scenario: John has a taxable income of $40,000.
Calculation:
Income over $37,500: $40,000 - $37,500 = $2,500
Reduction: $2,500 * 0.05 = $125
LITO: $700 - $125 = $575
Taxable Income | LITO |
|---|---|
$40,000 | $575 |