Low Income Tax Offset (LITO) Calculator
The Low Income Tax Offset (LITO) reduces tax for Australian residents earning up to A$66,667. Maximum A$700; phases out above A$37,500. Calculate your LITO and net tax saving.
| Income tax before offset | — |
| LITO offset | — |
| Net tax payable | — |
The Low Income Tax Offset (LITO) is an automatic offset (not a refund) that reduces income tax for Australian residents earning up to A$66,667. Maximum offset is A$700 at incomes up to A$37,500, phasing out above that. LITO is non-refundable but can reduce your tax bill to zero.
LITO Amount by Income
Up to A$37,500: full LITO of A$700. A$37,501–A$45,000: A$700 minus 5 cents for every dollar above A$37,500. A$45,001–A$66,667: A$325 minus 1.5 cents per dollar above A$45,000. Above A$66,667: no LITO.
How LITO Is Applied
LITO is applied automatically at tax time when the ATO assesses your return — you don't claim it separately. It reduces income tax payable but cannot reduce Medicare Levy. If your tax is already zero, LITO is wasted (it's not refundable).
LITO vs LMITO
The Low and Middle Income Tax Offset (LMITO) was a separate, temporary offset that ended in 2021–22. LITO is permanent and ongoing. Don't confuse them — older online calculators that include LMITO are outdated.
Last updated May 2026. Sources: ATO Low Income Tax Offset, ATO Tax Rates.