The seniors and pensioners tax offset (SAPTO)
Updated 13 November 2026.
The seniors and pensioners tax offset (SAPTO) reduces the tax of eligible older Australians and pensioners. With the low income tax offset, it lets a single senior earn up to $36,961 in 2026–27 before paying any income tax.
Who can get it
You may be eligible if you receive an Australian Government pension such as the Age Pension, or you've reached Age Pension age (67) and would qualify for the Age Pension except for the income or assets test, and your income is under the cut-out below. Some veterans' pensions also qualify.
How much it's worth in 2026–27
| Status | Maximum offset | Full offset up to | Nothing from |
|---|---|---|---|
| Single | $2,230 | $36,034 | $53,874 |
| Couple (each) | $1,602 | $31,847 | $44,663 |
| Couple separated by illness (each) | $2,040 | $34,767 | $51,087 |
Above the full-offset threshold the offset falls by 12.5 cents for each dollar of rebate income. Couples are tested on half their combined rebate income. For a single senior:
| Rebate income | Offset |
|---|---|
| $30,000 | $2,230.00 |
| $36,000 | $2,230.00 |
| $40,000 | $1,735.00 |
| $45,000 | $1,110.00 |
| $50,000 | $485.00 |
Less tax taken from your pay
If you work and claim SAPTO on your withholding declaration, your employer uses the ATO's seniors tables. On $662.00 a week, a single senior has $2.00 withheld instead of $58.00.
Medicare levy
People entitled to SAPTO also have higher Medicare levy thresholds: a single senior pays no levy up to $44,268, phasing in to $55,335 (latest legislated thresholds).
Choose "Senior or pensioner" in the pay calculator or tax refund calculator.