Low-income earners, such as those who only work part-time, may be eligible for a tax offset. Unlike most other tax offsets, however, you do not have to claim the Low-Income Tax Offset on your tax return. The ATO is kind enough to claim it for you when you lodge your return.
The offset reduces your tax to zero but does not reduce the Medicare Levy. If your taxable income is below $66,667 you qualify for the low-income tax offset.
Children under 18 years old will no longer be able to access the Low-Income Tax Offset to reduce the tax payable on their unearned income.