07 Jun 11
Low income tax offset – regulations amended
The Taxation Administration Regulations 1976 have been amended to increase the proportion of the low income tax offset (LITO) that is delivered through workers’ week-to-week pay packets from 50% to 70%: Taxation Administration Amendment Regulations 2011 (No 2) (SLI 2011 No 84; made 2 June 2011; registered 6 June 2011). This gives effect to a measure announced in the 2011-2012 Budget.
Regulation 24(e) is amended to enable the Commissioner to take into consideration 70% of the amount of the LITO when making income tax withholding schedules.
The remaining 30% of a taxpayer’s LITO benefit will still be paid as a lump sum on assessment of the taxpayer’s income tax return. The taxpayer’s total LITO entitlement for any one year will remain unchanged.