From 1 July 2008 the Low Income Tax Offset (LITO) will increase from $750 to a generous $1,200. This means a taxpayer will be able to earn $14,000 before they pay tax.
From 1 July 2009, it will go up even further to $1,350 and from 1 July 2010 will reach $1,500.
The tax offset will continue to be phased out at $30,000.
You can read more about the current LITO eligibility and rates from our main site.
Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
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