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Worried you’re missing part of your refund? Remember, the low and middle income tax offset isn’t a refund on its own – it’s used to offset (or reduce) the amount of tax you pay. The offset amount you may be entitled to is automatically applied and could range between $255-$1080, depending on things like your taxable income and how much tax you’ve paid.
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Re: Did not receive Low and Middle Income tax offset

Newbie

Views 450

Replies 3

my taxable income in 2019-2020 was 34k and I did not receive the low and middle income tax offset. My spouse made 110k this year. I have not seen anything online about not being eligible for the offset because of spouse income. Can someone please clarify why I did not receive the offset? Thank you, much appreciated.

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 2

Hi @Brookec,

 

Have you looked at your notice of assessment to confirm this?


Both offsets for low and middle income earners are non-refundable offsets. This means they can reduce your taxable income to zero but any remainder cannot be refunded to you.

 

The low income tax offset does not impact Medicare levy or excess private health insurance rebate, either, so keep this in mind.

 

The only eligibility for both offsets is your income. It is not assessed on your combined income with a spouse.

 

If you check your notice of assessment and it does not show the offset, contact us to discuss any specific reasons why it might not show, or to send off for correction.

3 REPLIES 3

Most helpful response

ATO Community Support

Replies 2

Hi @Brookec,

 

Have you looked at your notice of assessment to confirm this?


Both offsets for low and middle income earners are non-refundable offsets. This means they can reduce your taxable income to zero but any remainder cannot be refunded to you.

 

The low income tax offset does not impact Medicare levy or excess private health insurance rebate, either, so keep this in mind.

 

The only eligibility for both offsets is your income. It is not assessed on your combined income with a spouse.

 

If you check your notice of assessment and it does not show the offset, contact us to discuss any specific reasons why it might not show, or to send off for correction.

Newbie

Replies 1

I have received the notice of assessment and it was not applied. I called the ATO and spoke to a representative who told me that spousal income does affect whether I would receive this offset

Former Community Support

Replies 0

Hi @Brookec,

 

The ATO representative was incorrect in saying that this was affected by your spouse's taxable income, unfortunately (may have been confused with some other offsets). However, as @BlakeATO mentioned, it could be that due to the fact that this offset is non-refundable, perhaps some other offset cancelled out any tax payable (or you paid no tax), and this is the reason, it was not applied. This offset should be processed automatically in the system, if it applies to you.

 

According to Low and middle income tax offset earners, the most offset you would have been able to claim was $255, but this is dependent on having enough tax payable to fully 'use it'.

 

If you wanted to contact us again, you could get a breakdown from the ATO officer of your notice of assessment to check, for your info.