Читать книгу 101 Ways to Save Money on Your Tax – Legally! 2017-2018 - Adrian Raftery - Страница 14

There are a few tax benefits available if you are a low-income earner, such as when you work part time.

Low-Income Tax Offset

The low-income tax offset (LITO) is a tax rebate for individuals on lower incomes. In 2017-18, the LITO will provide a tax rebate of $445 for individuals who earn less than $37 000. The offset is reduced by 1.5 cents for every dollar that your taxable income exceeds $37 000, before eroding entirely at $66 667.

TIP

Low-income earners can effectively earn up to $20 542 each year tax-free. So if you have a spouse who is not working, consider an income-splitting strategy to save as much as $10 066 in tax.

To be eligible for LITO, you must be a resident for tax purposes and lodge a tax return. The ATO will automatically apply this offset to your assessment for you if you're entitled to it.

PITFALL

Minors cannot use the LITO to reduce tax payable on their unearned income.

BONUS RESOURCES

Go to my website www.mrtaxman.com.au for a low-income tax offset calculator to work out the amount of offset you are entitled to.

Superannuation Co-Contribution

If your total superannuation balance is under $500 000 and your total income is under the low-income threshold of $36 813 and you contribute $1000 post-tax to your super fund, the government will match it by 50 per cent with a further $500. The super co-contribution gradually phases out to nil (by 3.333 cents per dollar) at the higher income threshold of $51 813.

Superannuation Spouse Contribution Tax Offset

You are entitled to a rebate of up to $540 if you make contributions into your spouse's superannuation fund, if your spouse's assessable income and reportable fringe benefits are less than $40 000 (increased from $13 800 in the 2016-17 income tax year).

The rebate is 18 per cent of the lesser of:

•$3000 reduced by $1 for every dollar that your spouse's assessable income and reportable fringe benefits exceed $37 000 (increased from $10 800 in the 2016-17 income tax year)

•the total of the eligible spouse contribution.

TAX FACT

The ATO outlines that tax offsets and tax deductions are not the same. Tax offsets are taken directly off your tax, while tax deductions are taken off your assessable income, which is used to calculate your tax. So each $1 of tax offset means you pay $1 less tax, regardless of your taxable income.

Low-Income Superannuation Tax Offset

From 1 July 2017, this offset replaces the Low-Income Superannuation Contribution but despite the new name, the operation remains the same. The government will contribute up to $500 annually into the superannuation account of workers on adjusted taxable incomes of up to $37 000 to ensure that no tax is paid on superannuation guarantee contributions.