Tax Offsets & Rebates
Offsets that directly reduce the tax you pay
Low-Income Offsets
Automatic offsets for lower earners
Low Income Tax Offset (LITO)
An automatic tax offset of up to $700 for individuals earning under $66,667. You don't need to claim it — the ATO applies it when you lodge.
Example
Earn $35,000? You get the full $700 offset, reducing your tax from $2,688 to $1,988.
Low Income Superannuation Tax Offset (LISTO)
The government refunds up to $500 of super contributions tax for low-income earners, paid directly into your super.
Example
Earn $35,000? Your employer super of $4,200 is taxed 15% ($630). You get $500 back into super.
Private Health Insurance
Rebate tiers and how to avoid the surcharge
Private Health Insurance Rebate
The government contributes to your private health insurance premium based on your income and age. You can claim it as a reduced premium or a tax offset at lodgement.
Example
Earn $80,000 and pay $1,800/year for hospital cover? You get a 24.6% rebate = $443 back.
Avoiding the Medicare Levy Surcharge
If you earn over $93,000 (single) without private hospital cover, you pay an extra 1-1.5% surcharge. Getting basic hospital cover is usually cheaper.
Example
Earn $100,000 with no cover? Surcharge = $1,000. Basic hospital cover might only cost $700.
Spouse & Family Offsets
Offsets for supporting a low-income spouse
Spouse Super Contribution Offset
Contribute to your spouse's super and get a tax offset of up to $540. Your spouse must earn under $40,000.
Example
Your partner earns $30,000. You contribute $3,000 to their super — you get an 18% offset = $540.