LITO FORMULA 2012-2013(Also applies for 2013-14, 2014-15)
With effect from 1 July 2012 the full offset is $445, with a withdrawal rate of 1.5 cents per dollar of income over $37,000, such that it cuts out at $66,667.
Here’s the calculation table:
| Taxable Income | LITO Offset 2012-13 | | $0 – $37,000 | $445 | | $37,001 – $66,667 | $445 – [(taxable income - $37,000) x 1.5%] | | $66,667 + | Nil |
From 1 July 2015 the LITO is $300 with a 1 cent per dollar withdrawal rate on incomes over $37,000 |