Budget set to extend low and middle income tax offset

Friday 23 April 2021

There was concern that lower and middle-income earners would soon receive less disposable income once the low and middle income tax offset (LMITO) finished as scheduled on 30 June 2021.

The LMITO provided a tax rebate of up to $1080 for singles and $2160 for dual-income couples depending on their income (see table below). It was a temporary measure implemented as part of the Morrison Government’s Stage 1 tax cuts.

The LMITO was scheduled to expire on 30 June 2021.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.