Private ruling: Dependent tax offset
Published: July 2013
Ruling period: Year ending 30 June 2013 | Year ending 30 June 2014 | Year ending 30 June 2015 | Year ending 30 June 2016 | Year ending 30 June 2017
Date scheme commenced: 1 July 2012

Ruling: Q1: Are you entitled to claim a dependent tax offset in respect of your invalid spouse? | A1: No

Relevant facts and circumstances: You maintain a dependent spouse. Your spouse has ongoing health issues which have led to them having a permanent incapacity to work. Your spouse does not receive a disability support pension.

Relevant legislative provisions: Income Tax Assessment Act 1936 Section 159J

Reasons for decision: Summary: A resident taxpayer that contributes to the maintenance of a spouse may be entitled to claim the spouse offset under section 159J of the Income Tax Assessment Act 1936 (ITAA 1936). To be eligible for a dependent tax offset in respect of a spouse in the relevant financial year and beyond, the following conditions must be fulfilled: · you must contribute to the maintenance of your spouse; · your adjusted taxable income must be less than the income threshold for Family Tax Benefit Part B; and · your spouse must be born prior to 1 July 1952, unless they are deemed an invalid spouse. Subsection 159J(6) of the ITAA 1936 defines an invalid spouse as a spouse of the taxpayer who is receiving a disability support pension or a special needs disability support pension. In your case, it is accepted that you contributed to the maintenance of your spouse, and, for the relevant year, your income is less than the income threshold for Family Tax Benefit Part B. However, as your spouse was born after 1 July 1952, and is not considered an invalid spouse as they do not receive a disability support pension or a special needs disability support pension, you do not fulfil all of the criteria to be able to claim the dependent tax offset in respect of your spouse. | Detailed Reasoning - Additional information: Please note the definition of an invalid spouse was amended to include only those people actually in receipt of a disability support pension or a special needs disability support pension on 28 June 2013, and applies from the 2012-13 financial year and beyond.