Private ruling: Housekeeper tax offset
Published: September 2011
Ruling period: Year ended 30 June 2011
Date scheme commenced: 1 July 2010

Ruling: Q1: Are you eligible to claim the housekeeper tax offset? | A1: No

Relevant facts and circumstances: Your mother and mother-in-law stayed with you for some time during the year. They took care of your house and child, at different times, while you and your spouse worked. Both were in Australia on visitors' visas which were valid for 12 months. You and your spouse both work full time. Your child is approximately X months old. Neither your child nor your spouse is disabled. Your spouse does not receive a disability support pension.

Relevant legislative provisions: Income Tax Assessment Act 1936 Section 159L.

Reasons for decision: Summary: Subsection 159L(1) of the Income Tax Assessment Act 1936 (ITAA1936) allows a tax offset in limited circumstances where a housekeeper is wholly engaged in keeping house in Australia for a taxpayer and who cares for: · a child of the taxpayer less than 21 years of age · a child, whether or not a student, under 21 years of age and the taxpayer is entitled to a notional rebate for that child · an invalid relative for whom the taxpayer is entitled to a dependants tax offset; or · the spouse of the taxpayer who is in receipt of a disability support pension under the Social Security Act 1991 (SSA 1991). However, subsection 159L(4) of the ITAA 1936 provides that where a taxpayer has a spouse, the taxpayer is not entitled to the housekeeper tax offset unless special circumstances exist. Some examples of special circumstances would be if you had a child with a severe mental disability who required constant attention, or your spouse suffered from an extended mental illness and was medically certified as being unable to care for the children. Additionally, from 1 October 2010 a taxpayer is not entitled to the housekeeper tax offset if the taxpayer's spouse is not in receipt of a disability support pension. In your case, there is no indication that any special circumstances exist. Also, you have advised that your spouse does not receive a disability support pension. Therefore you are not entitled to claim a housekeeper tax offset for the relevant year. Whilst we understand that your mother and mother-in-law took care of your house and child because you and your spouse worked full time this does not constitute special circumstances for the purpose of the housekeeper tax offset.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.