Low and Middle Income Tax Offset
A measure that will no doubt be beneficial for individual taxpayers is the increase in the Low and Middle Income Tax Offset (‘LMITO’) for the 2022 income year by $420. The LMITO is a tax offset which reduces an individual taxpayer’s tax liability.
This means that the maximum amount of the LMITO for the 2022 income year will now be $1,500 (up
from $1,080 for the 2021 income year). However, the LMITO will not be extended to the 2023 income year.
Reduction in Fuel Excise
Fuel excise on petrol and diesel will be reduced by 50% (a reduction of 22.1 cents per litre) from 30 March 2022 to 28 September 2022.
This temporary reduction in the fuel excise is to soften the impact of increased petrol and diesel prices that have been triggered by Russia’s invasion of Ukraine.
Tax deductions for work-related COVID-19 tests
Last month’s edition of Practice Update discussed a proposal for COVID-19 tests, to be both:
• tax-deductible; and
• exempt from FBT;
broadly where they are purchased for work-related purposes.
This proposed legislative change is now law with effect from 1 July 2021.
If you have questions on how the changes affect you or your business, and what you can do to make the most of them, we’re here to support you. Contact us here to book a catch up with an RJ Sanderson professional.
This article is published by R J Sanderson and Associates Pty Ltd ABN 71 060 299 783. This article contains general information only and is not intended to represent specific personal advice (Accounting, taxation, financial or credit). No individual personal circumstances have been taken into consideration for the preparation of this material. It is recommended that you obtain your own personal professional advice before making any financial or business decision.