Low income tax offset (‘LITO’)
From 1 July 2008, the low income tax offset will increase from $750 to $1,200. From 1 July 2009, it will increase further to $1,350 and from 1 July 2010 to $1,500.
The tax offset will continue to be phased-out once taxable income exceeds $30,000 (i.e., the LITO will be reduced by 4 cents for every $1 of taxable income above $30,000).
Those eligible for the full income tax offset will have a tax-free threshold as outlined on the image