Tax offset to end

The financial year ending 30 June 2014 will the last one in which you may be eligible to claim the Mature Age Worker Tax Offset (MAWTO).

The MAWTO has been gradually phased out from 1 July 2012, but the 2014/15 Federal Budget saw it abolished for all. When you submit your tax return, he ATO automatically calculates whether or not you are entitled to the offset, which is a maximum of $500. The eligibility criteria, of which you must meet all, is as follows:

  • be an Australian resident for tax purposes
  • be born before 1 July 1957
  • have received ‘net income from working’ below the upper income threshold ($63,000)

If your income is between $10,000 and $53,000 you will receive the full $500 offset, with the offset reducing by five cents for every dollar of income above $53,000, until it cuts out at $63,000. This income includes reportable employer super contributions, but not Superannuation Guarantee contributions.

To find out more about the MAWTO, visit ATO.gov.au.

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