Tax Offsets in Australia
Part of the Tax for Australians For Dummies Cheat Sheet
When figuring taxes in Australia, you can use tax offsets to reduce your tax payable. You can’t use tax offsets to reduce the Medicare levy liability.
Ordinarily, you can’t have unused tax offsets refunded back to you. The two exceptions are
Franking credit tax offset
Private health insurance rebate
Eligibility for the low income tax offset is applicable to low income resident individuals.
|Maximum tax offset||$445|
|Taxable income threshold||$37,000|
|Taxable income upper limit||$66,666|
You can claim a franking credit tax offset if you receive a dividend that’s franked. Unused franking credits can be refunded to you.