What is LAMITO?

6th August 2019 |

What is LAMITO?
Low and Middle Income Tax Offset or LAMITO for short, was announced as part of the 2018 Federal budget to provide tax relief for eligible low and middle-income earners.
Starting from 1 July 2018 through to 30 June 2022, if you are an eligible tax payer, you will be able to receive this offset when you lodge your tax return.

Am I eligible for LAMITO?
To be eligible for LAMITO your taxable income needs to be $126,000 or below.
The amount of LAMITO you receive will be dependent on the bracket your taxable income falls in.

How is LAMITO calculated?
The ATO will calculate the offset automatically after you lodge your tax return.
To know how much you will be getting back:
If you earn $37,000 or less, you will receive $255 of LAMITO offset.
If you earn between $37,001 to $48,000, you will receive $255 plus 7.5% of the portion of your taxable income that exceeds $37,000.
If you earn between $48,001 to $90,000 then you are lucky because you will be receiving the full LAMITO offset of $1,080.
If you earn between $90,001 to $126,000, you will receive $1,080 less 3% of the portion of your taxable income that exceeds $90,000.
Because it is an offset, it cannot generate a refund. The offset will only reduce the tax that is calculated on your taxable income and any excess is lost.

If you have are still unsure about LAMITO and how it will affect your tax, contact CrossCorp today!