Tax offsets – sometimes referred to as rebates – are not the same as tax deductions. Offsets directly reduce the amount of tax you must pay. Each dollar of tax offset reduces your tax payable by a dollar regardless of your taxable income.
Mature age workers, seniors and pensioners may be eligible for tax offsets. If you are a low-income earner you may be eligible for an offset and if your medical expenses pass the threshold limit you may be eligible for the medical expenses tax offset, too. You may also be eligible for an offset if you receive income from a superannuation income stream.
Seniors and pensioners tax offset
If you have reached the age pension age, the seniors and pensioners tax offset allows you to earn more money before you have to pay tax or the Medicare levy. There is a range of eligibility conditions which relate to age, income and eligibility for Australian government pensions or allowances.
Low-income offset
Seniors and Retirees may be eligible for a tax offset if you are a low-income earner. You don’t have to claim this offset – Taxwise will work it out for you when you lodge your tax return – However you can find out if your eligible here
Medical expenses tax offset
You may be eligible to claim a percentage of your net medical expenses over the set threshold. There is no upper limit to the amount you can claim but the threshold is indexed and changes every year.
From 1 July 2012, your income level affects eligibility and entitlements for this offset.
Australian superannuation income stream tax offset
If Seniors and Retirees have income from an Australian superannuation income stream, you may be entitled to a tax offset if you are either receiving a disability superannuation benefit or death benefit income stream; or you are 55 years or older.
Seniors and pensioners tax offset
If you have reached the age pension age, the seniors and pensioners tax offset allows you to earn more money before you have to pay tax or the Medicare levy. There is a range of eligibility conditions which relate to age, income and eligibility for Australian government pensions or allowances.
Low-income offset
Seniors and Retirees may be eligible for a tax offset if you are a low-income earner. You don’t have to claim this offset – we will work it out for you when you lodge your tax return – but our low-income tax offset calculator will help you determine whether or not you are eligible for an offset.
Australian superannuation income stream tax offset
If Seniors and Retirees have income from an Australian superannuation income stream, you may be entitled to a tax offset if you are either receiving a disability superannuation benefit or death benefit income stream; or you are 55 years or older.
