Low and Middle Income Tax Offset (LMITO)
A now-expired tax offset of up to $1,500 that applied from 2018–19 to 2021–22, providing additional relief to low and middle income earners.
The Low and Middle Income Tax Offset (LMITO, often called the "lamington") was a temporary non-refundable tax offset introduced in the 2018–19 Budget. It provided up to $1,080 initially, increased to $1,500 in its final year (2021–22), for individuals with taxable income up to $126,000. LMITO ended after the 2021–22 financial year and no longer applies.
During its operation, LMITO was available in addition to LITO, effectively providing a double-up of low-income support. At its peak ($1,500 in 2021–22), a taxpayer earning $48,000–$90,000 received both the full LMITO of $1,500 and a partial LITO — a combined offset of over $2,000. This contributed to larger-than-usual tax refunds during those years.
LMITO was replaced, in effect, by the Stage 3 tax cuts from 1 July 2024, which permanently reduced the 19% rate to 16% and the 32.5% rate to 30%. If you are researching older tax years (2018–19 through 2021–22), LMITO should be factored into calculations. For 2022–23 onwards, it does not apply.