Private ruling: Dependant (invalid and carer) tax offset
Published: April 2014
Ruling period: Year ended 30 June 2013
Date scheme commenced: 1 July 2012

Ruling: Q1: Are you entitled to claim the dependant (invalid and carer) tax offset for the 2012-13 financial year? | A1: No.

Relevant facts and circumstances: Your spouse has been medically assessed as being an invalid. You contribute to the maintenance of your spouse. You are both Australian residents for tax purposes. Your spouse is not in receipt of a disability support pension, special needs disability support pension or an invalidity service pension. Your adjusted taxable income is below the combined income threshold for Family Tax Benefit (FTB) Part B.

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

Reasons for decision: Summary: The Government announced in the 2012-13 Budget that they would consolidate eight existing dependency tax offsets into a single non-refundable offset that is only available to resident taxpayers who maintain a resident dependant who is unable to work because of invalidity or because of their care obligations. The legislation passed through parliament on 28 June 2013 and the changes applied from 1 July 2012. To be entitled to receive the dependant (invalid and carer) tax offset in respect of an invalid spouse for the 2012-13 financial year and beyond, the following conditions must be fulfilled; • you must contribute to the maintenance of your spouse • your spouse is an Australia resident for tax purposes • your adjusted taxable income (ATI) must be less than the income threshold for FTB Part B (which is $150,000 for the 2012-13 financial year) • your spouse must be in receipt of a disability support pension or a special needs disability support pension under the Social Security Act 1991 or an invalidity service pension under the Veterans' Entitlement Act 1986; and • your spouse's ATI for the 2012-13 financial year is less than $9,974. In your situation it is accepted that you contribute to the maintenance of your spouse and, your income is less that the income threshold for FTB Part B. However, your spouse is not paid a disability support pension, special needs disability support pension or an invalidity service pension. The Commissioner is bound by the law and has no discretion to allow you to claim the dependant (invalid and carer) tax offset when the requirements of the legislation are not met.