The Low and Middle Income Tax Offset (known as the LMITO or “lamington”) has been given yet another new lease of life.
What started in 2018 as a stop-gap until broader tax cuts were introduced, was extended because of COVID after the tax cuts were introduced in the 2020 budget and has now been extended again in 2021 to assist with the COVID recovery.
Which is odd, because, being a delayed payment (it is only paid out as tax refunds after the end of each financial year), it offers anything but real-time support.
And despite its name, it isn’t offered to Australians on very low incomes.
News by Samantha Maiden Treasurer Josh Frydenberg is set to extend the tax rebate known as The Lamington in Tuesday s Budget, delivering a tax cut worth up to $2160 for couples. The temporary tax relief was due to be phased out this year but with an election looming the Morrison Government will extend it at a cost of $7 billion. Known as the Low and Middle Income Tax Offset (LMITO), or colloquially as The Lamington , the offset is payable when you lodge your tax return. In Tuesday s Budget the Treasurer will confirm it s been extended for another year - leaving the painful decision on when to cut it until after the federal election.
analysis
Australia s tax system favours men over women so it s time to make the budget more female-friendly
Posted 2
updated 29
The tax system favours men over women, partly because they are in higher-paying jobs.
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Federal politicians on both sides have delivered tax policy changes, including personal income tax cuts and superannuation tax concessions, that aim to alleviate pressure on working Australians.
These policies are not inherently discriminatory, but some experts have noted they are inadvertently leading to inequality, not only between the rich and poor, but between men and women.
Under our current progressive tax system, the average tax rate, or the total amount of tax paid as a percentage of income, increases as the taxpayer s income increases.