Insights
Federal Budget 2021 - 22: Personal Income Tax
- Extension of low- and medium-income tax offset (LAMITO)
- Personal income tax rates unchanged
- Medicare levy surcharge and private health insurance thresholds unchanged
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 Income | Offset |
| $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
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