Private ruling: Tax offset
Date of advice: 23 September 2015
Published: September 2015
Ruling period: Year ended 30 June 2014 | Year ended 30 June 2015
Date scheme commenced: 1 July 2013

Ruling: Q1: Are you entitled to a dependent spouse or dependent (invalid and carer) tax offset? | A1: No.


Relevant legislative provisions: Income Tax Assessment Act 1936 Section 159J | Income Tax Assessment Act 1997 Section 61-10

Reasons for decision: Summary: Spouse tax offset The legislation in relation to claiming a tax offset for a dependent spouse was amended recently. The amended legislation applies to assessments for the 2012-13 financial year and later income years. Under the amended subsection 159J(1C) of the Income Tax Assessment Act 1936 , a taxpayer is not entitled to a tax offset in respect of a dependent spouse if the dependant was born on or after 1 July 1952. As your spouse was born after this date, you are not entitled to a dependent spouse tax offset. Dependent (invalid and carer) tax offset Under section 61-10 of the Income Tax Assessment Act 1997 , certain taxpayers are entitled to a dependent (invalid and carer) tax offset. You may be entitled to a tax offset if you maintained your spouse during the income year and your spouse was receiving (a) a disability support pension or a special needs disability support pension under the Social Security Act 1991 ; or (b) an invalidity service pension under the Veterans' Entitlements Act 1986 . In your circumstances, your spouse does not receive a disability support pension or invalidity service pension. Therefore you are not entitled to a dependent (invalid and carer) tax offset. We acknowledge, your specific circumstances, however, the current legislation does not provide any tax offset or concession in your situation.

Relevant facts: Your spouse has a medical condition and is classed as invalid and unable to work. | You or your spouse, do not claim any Centrelink allowances. Your spouse would be eligible for a disability pension but your taxable income is too high. | Your spouse has no taxable income for the 2013-14 and 2014-15 financial years. | Your spouse was born after 1 July 1952. | You pay 100% of the care, food, health and maintenance costs for your spouse.