Publication date: 22 May 19 |
Source: THE TAX INSTITUTE
LMITO – Tax benefit set to cause administrative nightmare
Sydney, Wednesday 22 May 2019
Recent media reports have indicated that Parliament is unlikely to be able to be recalled prior to 30 June 2019, putting in jeopardy the returning Coalition Government’s Low and Middle Income Tax Offset (LMITO) increase.
In the 2019-20 Federal Budget, the Government announced it would increase the LMITO for the 201819 income year by increasing the base amount from $200 to $255 and the maximum amount from $530 to $1,080.
“If the relevant legislation can’t be passed before 30 June, we foresee some administrative problems coming the way of taxpayers, their agents and the ATO,” said The Tax Institute’s Senior Tax Counsel, Professor Bob Deutsch.
“There are three possible remedies here – taxpayers who lodge their 2019 returns prior to the legislation being passed will have to lodge amended returns once the legislation is passed after 30 June; the Commissioner could grant an extension to all taxpayers to lodge after 31 October 2019 to allow time for the legislation to be passed; or the Government could defer the start date of the measure for a year,” said Professor Deutsch.
All options will mean a delay for taxpayers entitled to the offset getting the benefit.
“A delay might be a bitter pill to swallow for some taxpayers”, said Professor Deutsch.
For more information, please contact: Noha Shaheed Ahmed, Media Relations: 02 8223 0039.
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