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Insights

Federal Budget 2021 - 22: Personal Income Tax

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Published by:
James Morris
Published on:
May 13, 2021
Modoras Accounting (QLD) Pty Ltd ABN 81 601 145 215
Federal Budget 2021-22 Personal Income Tax Banner

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.

If you do get a refund, what do you plan to do with it? Here are some ideas for you to consider.

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

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 changes.

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. Watch the recorded live of the Federal Budget 2021-2022: What Opportunities are in it? webinar 

Make tax time count. Know what you need to prepare for tax time this year.

IMPORTANT INFORMATION: This blog has been prepared by Modoras Accounting (QLD) Pty. Ltd. ABN 81 601 145 215. The information and opinions contained in this blog is general information only and is not intended to represent specific personal advice (Accounting, taxation, financial, insurance or credit). No individuals’ personal circumstances have been taken into consideration for the preparation of this material. The information and opinions herein do not constitute any recommendation to purchase, sell or hold any particular financial product. Modoras Accounting (QLD) Pty. Ltd. recommends that no financial product or financial service be acquired or disposed of or financial strategy adopted without you first obtaining professional personal financial advice suitable and appropriate to your own personal needs, objectives, goals and circumstances. Information, forecasts and opinions contained in this blog can change without notice. Modoras Accounting (QLD) Pty. Ltd. does not guarantee the accuracy of the information at any particular time. Although care has been exercised in compiling the information contained within, Modoras Accounting (QLD) Pty. Ltd. does not warrant that the articles within are free from errors, inaccuracies or omissions. To the extent permissible by law, neither Modoras Accounting (QLD) Pty. Ltd. nor its employees, representatives or agents (including associated and affiliated companies) accept liability for loss or damages incurred as a result of a person acting in reliance of this publication. Liability limited by a scheme approved under Professional Standards Legislation.

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