If a taxpayer has only been an Australian Tax Resident for part of the tax year, the tax offset is the same as if they had been an Australian Tax Resident for a full year.  It is not pro-rated.

The ‘Maximum Offset’ reduces by 12.5 cents for every dollar of ‘rebate” income over the ‘Lower Threshold’ and reduces to nil for “rebate” income levels at or above the ‘Upper Threshold’.

The ‘Maximum Offset’ reduces by 12.5 cents for every dollar of ‘rebate” income over the ‘Lower Threshold’ and reduces to nil for “rebate” income levels at or above the ‘Upper Threshold’.

The ‘Maximum Offset’ reduces by 12.5 cents for every dollar of "rebate" income over the ‘Lower Threshold’ and reduces to nil for "rebate" income levels at or above the ‘Upper Threshold’.

What follows is a short summary only.  Refer to the calculator link above for the detailed eligibility conditions.  Prior to 1 July 2012, if you were not eligible for SATO you may still have been eligible for the Pensioner Tax Offset.

You may be entitled to the Seniors and Pensioners Tax Offset (SAPTO) if you meet all of the following conditions:

> Condition 1 – You are of Age Pension or Service Pension age
Refer to the link below for details

> Condition 2 – You are eligible or would be eligible for the Australian Government age pension or similar payments at some time during the income year, if not for failing the Assets Test or Income Test.  In addition, residency tests must be satisfied.

> Condition 3 – You are below:

           > From 2009/2010  – The rebate income threshold (refer below)
           > Up to 30 June 2009 – the taxable income threshold (refer below), and

> Condition 4 – You are not in prison.
If your combined rebate income (up to 30 June 2009 it was taxable income) is equal to or more than the relevant upper threshold then neither you nor your partner is eligible.
 

If your rebate income (up to 30 June 2009 it was taxable income) is less than the threshold, then your actual entitlement to the tax offset depends on:

> your rebate income (up to 30 June 2009 it was taxable income), and

> whether you are eligible to transfer any unused portion of your spouse’s senior Australians or pensioner tax offset.

Note

If your marital status changed during the year, you are entitled to the SAPTO option that gives you the greatest benefit. However, you will still need to meet the relevant rebate income (up to 30 June 2009 it was taxable income) threshold.

From 1 July 2012, the Pensioner Tax Offset is no longer available and all individuals who would otherwise have been eligible for the Pensioner Tax Offset instead receive the Seniors and Pensioners Tax Offset (SAPTO). 

The ‘Maximum Offset’ reduces by 12.5 cents for every dollar of taxable income over the ‘Lower Threshold’ and reduces to nil for taxable income levels at or above the ‘Upper Threshold’.