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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: How is disablement and TPD treated re:income tax and child care subsidy?

Enthusiast

Replies 4

Hello again @Jodie_ATO - I just ran my numbers through a spreadsheet using the A-B-C calculation based on how Chris explained it in his post.

 

The calculation seems to work well, and appears to give me the same projected return independent of whether I add a TPD lump sum or not (which is good I believe).

 

Are you able to share anything regarding how LMITO or HELP loan payment calculations are made within this context? Thanks for all of your help!

ATO Community Support

Replies 3

Hi @GCL,

 

Glad to hear the TPD information has assisted you. Smiley Happy

 

If you have a HELP loan the compulsory repayment will be determined in relation to your HELP repayment income. This includes the following: 

  • taxable income – not including any assessable First Home Super Saver (FHSS) released amounts
  • any reportable fringe benefits (regardless of the exempt status of your employer)
  • total net investment loss (which includes net rental losses)
  • reportable super contributions
  • any exempt foreign employment income amounts.

If you reach the minimum threshold you will have a percentage to pay in regards to your HELP repayment income. This will be determined once your return is lodged. 

 

The LMITO will be applied once you lodge your return. If you meet the eligibility for both they act like tax credits and can reduce the amount of tax you have to pay. You can check the amounts applied for the 2021FY via the link below along with links for compulsory repayment threshold for HELP debt. 

 

Links-

Repayment thresholds and rates. 

Your repayment income.

LMITO amounts. 

 

All the best. 

Enthusiast

Replies 2

@Jodie_ATO so just to confirm what you are saying - there is no difference between how standard income only vs a combined TPD+standard income are treated for either of these? Essentially the combined amounts (normal income + TPD taxable portion) are used to determine your total assessable income amount? Thanks Smiley Happy 

ATO Community Support

Replies 1

Hi @GCL,

 

The amounts together still make up your taxable income amount. The way they are taxed may vary according to the tax rates for the payments. The taxable income amount will be used when determining your LMITO and your HELP debt.

 

All the best.

Enthusiast

Replies 0

@Jodie_ATO ok great, thank you - all the best to you as well