Low Income Tax Offset: a Little Extra in the Pay Packet

From 1 July 2011, the Government will increase the proportion of the low income tax offset (LITO) that is delivered through workers’ week-to-week pay packets from 50% to 70%. This change means that instead of being compensated after they put in their tax return at the end of the year, lower income earners are taxed less during the year. According to the Government, someone with an annual income of $30,000 will get an extra $300 during the year in their regular pay.