One of the biggest tax hikes in history is imminent for Australians earning less than $126,000 a year as the federal government’s low- and middle-income tax offset (LMITO) ends in July. Those earning under $100,000 will suffer a $1,200 hit, and those earning $50,000 a year will see a 3.4 percent or $29 per week cut in their after-tax income. The LMITO was introduced by the centre-right Turnbull government in 2018, and despite being extended and increased from $1,080 to $1,500 for the 2021-22 financial year, the Albanese government’s 2022-23 budget signals the end of the offset. The ceasing of the LMITO will put significant strain on household budgets, on top of already feeling the pinch due to inflation and months of interest rate hikes. Treasurer Jim Chalmers said that cost of living measures in the upcoming May budget would come in other forms, including a $7.5 billion relief package. The low-income tax offset remains in place for those earning up to $66,668 a year.