Federal Budget 2021 - 22: Personal Income Tax

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Extension of low- and medium-income tax offset (LAMITO)

Date of effect: 1 July 2021

As announced in the last Federal Budget, individuals with a taxable income of up to $126,000 will receive a tax offset in 2020–21 and 2021–22.

This offset has been extended for another year, until 30 June 2023.

The amount of the offset will vary according to your income, as follows:

Taxable IncomeOffset$37,000 or less$255$37,001 to $48,000$255 plus 7.5 cents for each dollar above $37,000 (maximum of $1,080)$48,001 to $90,000$1,080$90,001 to $126,000$1,080 less 3 cents for each dollar above $90,000

The offset will be applied automatically when your tax return is submitted. Depending on your circumstances, you may get a tax refund.

Click here to find out what the experts say about personal income tax change

Personal income tax rates unchanged

Personal income tax rates remain unchanged from those announced in the 2020–21 Federal Budget.

Click here to find out what the experts say about personal income tax change

Medicare levy surcharge and private health insurance thresholds unchanged

The income thresholds at which the Medicare levy surcharge is applied and at which private health insurance rebates decrease will continue unchanged for another two years.

Click here to find out what the experts say about personal income tax changes.

Expert insights

Get a Budget breakdown from our experts — an accountant, financial planner, and economist — and find out what the changes and opportunities are for you.

We’re here to support you. If you have questions on new schemes or how to build a resilient business, 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.

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