Tax Offsets Calculator Australia (LITO, WATO, SAPTO)
Work out your Australian tax offsets — Low Income Tax Offset (LITO), the new Working Australians Tax Offset (WATO), and the Seniors and Pensioners Tax Offset (SAPTO). Year-aware for 2024-25 to 2028-29.
Your assessable income less deductions.
WATO starts in 2027-28.
This estimate applies LITO, WATO and your own SAPTO only. It excludes Medicare levy, spouse SAPTO transfers and other offsets. See the tax refund estimator for a broader return estimate.
Low Income Tax Offset (LITO) by income (2026-27)
LITO is worth up to $700. It's full up to $37,500, then tapers at 5c per $1 to $45,000, then 1.5c per $1 until it cuts out at $66,667.
| Taxable income | LITO |
|---|---|
| $30,000 | $700 |
| $37,500 | $700 |
| $45,000 | $325 |
| $55,000 | $175 |
| $66,667 | $0 |
Seniors and Pensioners Tax Offset (SAPTO) 2026-27
SAPTO is full below the shade-out threshold, then reduces by 12.5c per $1 of rebate income until it cuts out.
| Status | Max offset | Full below | Cuts out at |
|---|---|---|---|
| Single | $2,230 | $36,034 | $53,874 |
| Couple (each) | $1,602 | $31,847 | $44,663 |
| Illness-separated couple (each) | $2,040 | $34,767 | $51,087 |
WATO is a separate legislated offset from 2027-28, so it shows $0 for 2026-27. SAPTO amounts shown here are before any transfer of unused SAPTO between eligible spouses.
How WATO is calculated from 2027-28
Under section 61-160 of the Income Tax Assessment Act 1997, WATO is the lesser of $250 and the basic income tax that would apply if taxable income consisted only of net labour income. Net labour income must exceed the $18,200 tax-free threshold, and the individual must be an Australian resident at some time during the income year.
That means an eligible worker just above $18,200 can receive a partial WATO. The full $250 is reached once basic income tax on net labour income reaches $250. Investment income alone does not qualify.
Worked examples (2026-27)
$35,000 employee
Below $37,500, so the full LITO is available and applied: $700. WATO has not started in 2026-27, and SAPTO is not included.
$33,000 single senior
If the ATO pension condition is met, $2,230 SAPTO + $700 LITO is available. The calculator applies $2,220, capped at basic income tax; $710 remains unused before any spouse SAPTO transfer.
Tax Accuracy & Sources
This estimate covers LITO, WATO and the individual's own SAPTO. It does not model foreign-resident tax, spouse SAPTO transfers, Medicare levy or every other tax offset.