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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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Loss of wage because of COVID-19

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Because of COVID-19 we had to take a pay cut. At the end of the day I'm out about 10k in loss wage. Can this be claimed back in my tax?

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ATO Certified Response

ATO Community Support

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Hi @Shane3140

 

In order to claim a work-related deduction, you must have actually spent money and not been reimbursed for it. A salary or wage cut is not an allowable deduction as you have not spent money.

 

Your reduced income will likely increase your eligibility for the Low income tax offset, though

1 REPLY 1

Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hi @Shane3140

 

In order to claim a work-related deduction, you must have actually spent money and not been reimbursed for it. A salary or wage cut is not an allowable deduction as you have not spent money.

 

Your reduced income will likely increase your eligibility for the Low income tax offset, though