Low Income Tax Offset (LITO)
LITO is worth up to $700 a year and is worked out automatically by the ATO — you don't need to claim it. The full $700 applies up to $37,500 of taxable income, then it phases out in two stages. LITO doesn't change between 2025–26 and 2026–27.
| Taxable income | LITO |
|---|---|
| $37,500 or less | $700 |
| $37,501 – $45,000 | $700 minus 5c per $1 over $37,500 |
| $45,001 – $66,667 | $325 minus 1.5c per $1 over $45,000 |
| $66,668 and over | $0 |
Seniors and Pensioners Tax Offset (SAPTO)
SAPTO is an extra offset for people who are Age Pension age and meet the ATO's pensioner/senior eligibility rules. It shades out gradually once your rebate income passes the relevant threshold. The thresholds below moved for 2026–27 because the 16% tax bracket dropped to 15%; use the FY switcher above to compare.
| Situation | Max offset | Shade-out from | Cuts out at |
|---|---|---|---|
| Single | $2,230 | $36,034 | $53,874 |
| Couple, each (living together) | $1,602 | $31,847 | $44,663 |
| Couple, each (illness-separated) | $2,040 | $34,767 | $51,087 |
Source: Australian Taxation Office — low income tax offset and seniors and pensioners tax offset.
Questions people actually ask
Do I need to claim LITO or SAPTO myself?+
No. Both are calculated automatically by the ATO when you lodge your tax return, based on your taxable income and (for SAPTO) the eligibility details you report. There's no separate claim form.
Can these offsets give me a tax refund by themselves?+
No. LITO and SAPTO are non-refundable — they can only reduce your tax payable down to $0. Any unused portion is lost, it isn't paid out or carried forward to another year.
What is the Working Australians Tax Offset (WATO)?+
WATO is a new offset worth up to $250, legislated as part of the 2026-27 Federal Budget. It applies from the 2027-28 income year onwards, so it isn't part of your 2025-26 or 2026-27 return. We'll add a WATO estimate to this calculator once the ATO publishes the full phase-out rules.
Can I get both LITO and SAPTO in the same year?+
Yes. If you're of Age Pension age, meet the SAPTO eligibility rules, and also have a low enough taxable income, you can receive both offsets in the same return — they're calculated independently and then combined.