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.
Related Terms
Low Income Tax Offset (LITO)
A non-refundable tax offset of up to $700 for individuals with taxable income below $66,667.
Tax Offset (Rebate)
A direct reduction in the amount of tax you owe, different from a deduction which reduces taxable income.
Income Tax
Tax levied by the federal government on your taxable income, calculated using progressive tax brackets.
Tax Brackets
The income ranges that determine the rate of tax applied to each portion of your taxable income.