AU 2028 LITO
AU 2028-29 LITO: max $700 if taxable income ≤ $37,500. Phase-out: 5c/$ from $37,500 to $45,000, then 1.5c/$ from $45,000 to $66,667 (fully gone).
| Taxable income | — |
| AU 2028-29 LITO | — |
The Australian 2028-29 Low Income Tax Offset (LITO) provides up to $700 tax offset for low-income earners. Max $700 at taxable income ≤ $37,500, phasing out 5c per $ from $37,500-$45,000 then 1.5c per $ from $45,000-$66,667. Fully gone at $66,667+. Non-refundable — reduces tax owed but cannot create a refund.
LITO Mechanics
Auto-applied at tax return — no claim needed. Non-refundable: if you owe $0 tax, LITO does nothing. If you owe $300 tax, $300 LITO applied, $400 LITO 'wasted'. Combined with tax-free threshold ($18,200), means many low-income earners pay no tax up to $25,000+.
LMITO Removed (since 2022-23)
Low and Middle Income Tax Offset (LMITO) — the additional 'lamington' offset up to $1,500 — was a temporary measure. Removed from 2022-23 onwards. Some confusion remains about LITO vs LMITO. Only LITO continues in 2028-29.
SAPTO Separate
Senior + Pensioner Tax Offset (SAPTO) is separate from LITO. Combines with low income super contribution, etc. for pension-age low earners.
Last updated May 2026. Sources: ATO LITO.