Tax Offsets in Australia

When figuring taxes in Australia, you can use tax offsets to reduce your tax payable. You can’t use tax offsets to reduce the Medicare levy liability.

Ordinarily, you can’t have unused tax offsets refunded back to you. The three exceptions are

• Baby bonus tax offset

  
  



• Franking credit tax offset

  
  



• Private health insurance rebate

  
  

Eligibility for the low income tax offset is applicable to low income resident individuals, as shown in the following table.

Low Income Tax Offset in Australia

	2010–11	2011–12
Maximum tax offset	$1,500	$1,500
Taxable income threshold	$30,000	$30,000
Taxable income upper limit	$67,500	$67,500

Residents over 55 years of age receiving net income from working are eligible to receive the mature age tax offset. The maximum tax offset is $500.

Common dependant tax offsets include spouse, child-housekeeper, invalid relative and parent/parent-in-law.

You can claim a franking credit tax offset if you receive a dividend that's franked. Unused franking credits can be refunded to you.

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Source:http://www.dummies.com/how-to/content/tax-offsets-in-australia.html