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Before you submit your tax return, you need to know the common tax offsets that can be claimed. Various tax offsets and rebates apply to reduce an individual's income tax. Following are some commonly used tax offsets:

Low income tax offset

If you are a low-income earner and your taxable income is below the tax threshold for the financial year, then you will be eligible for a tax offset. This offset is the most common and is only available to Australian residents for taxation purposes.

Seniors and pensioners tax offset
This will be available to seniors and pensioners who meet the age and eligibility requirements for the government pension. Depending on income the offset can be partial or full that may reduce the tax liability to zero.

Private health insurance tax offset
If you have private health insurance you can claim this offset as premium reduction which will lower the price of your health insurance premium, or the refundable tax offset through tax return.

Medical expenses tax offset
You will be eligible to claim the offset if you have paid for medical expenses relating to disability aids, attendant care or aged care over the year. You can only claim a certain percentage of your expenses depending on your income.

Australian superannuation income stream tax offset
You may be entitled to this offset if you are a retired person and receive income from an Australian superannuation income stream; or if you are receiving a disability superannuation benefit or death benefit; or you are 55 years or older.

Super contributions on behalf of your spouse tax offset
You may be able to claim a tax offset up to $540 per year if you contribute to a complying superannuation fund or a retirement savings account on behalf of your spouse who is earning a low income or not working.

Beneficiary tax offset
You can claim this offset if you receive certain allowances and payments from Australian government, and do not receive income from any other source.

Dependant tax offset
If you financially maintained your spouse, parent, child or sibling aged 16 years or older, spouse's child or sibling aged 16 years or older, spouse's parent who are invalid or carer then you may be able to claim the offset.

Zones tax offset
If you lived or worked in a remote area for 183 days or more in this financial year you may be eligible to claim this offset.

Overseas forces tax offset
This offset may be available to you if you serve overseas as a member of Australia′s Defence Force, Federal Police, or United Nations armed forces.

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