What is Tax Offset?
Tax Offsets (aka Rebates) such as low and middle income tax offset can reduce your tax liability to even $0 or Maximise your tax refund. There are two (2) different category of tax offsets:
Non-refundable Tax Offset:
Comprises of low income tax offset; and low and middle income tax offset, which can reduce the amount of tax payable if you meet the eligibility criteria. Generally, tax offsets can reduce your tax payable to nil, however, on its own, they cannot issue you a refund.
Refundable Tax Offset:
Can directly reduce the amount of tax you are liable to pay to an amount less than zero, which results in a Tax Refund; see list of refundable tax offsets Australia.
Note: Tax Offsets differs from tax Deductions. A tax offset reduces the amount of tax you have to pay. A tax Deduction reduces your Taxable Income.