Private ruling: Dependant tax offset
Published: February 2014
Ruling period: Year ended 30 June 2013
Date scheme commenced: 1 July 2012

Ruling: Q1: Are you entitled to a dependant (Invalid and Carer) tax offset for your relative? | A1: No


Relevant legislative provisions: Income Tax Assessment Act 1997 Section 61-10 | Income Tax Assessment Act 1997 Subdivision 61-A

Reasons for decision: Summary: The Government announced in the 2012-13 Budget they would remove the eight existing dependency tax offsets. These included the invalid relative tax offset, the parent tax offset and the housekeeper tax offset. From 1 July 2012, taxpayers can claim a new tax offset called the 'Dependant (Invalid and Carer) tax offset'. The Dependant (Invalid and Carer) tax offset is contained in Subdivision 61-A of the Income Tax Assessment Act 1997 . Taxpayers can only claim the Dependant (Invalid and Carer) tax offset for dependants who are in receipt of a government payment as an invalid or carer, or dependants who provide full-time care for someone who receives a government payment as an invalid. In your case your relative is living in Australia on a bridging visa. They do not earn any income from any source. While we acknowledge you have been supporting them financially and provide food, shelter, and clothing and out of pocket medical expenses since their arrival in Australia, they are not in receipt of a government payment as an invalid or carer. Therefore, as your relative is not in receipt of a government payment as an invalid or carer you are not entitled to a dependant (Invalid and Carer) tax offset.

Your relative resides with you at your home and solely dependent on you. | You support your relative financially and provide food, shelter and clothing and out of pocket medical expenses. | Your relative does not earn any income from any source. | Your combined taxable income for the 2012-13 income year was below $150,000.