Private ruling: Dependent tax offset
Published: August 2013
Date scheme commenced: 1 July 2012

Ruling: Q1: Are you entitled to claim a dependent tax offset in respect of your spouse? | A1: No This ruling applies for the following periods: Year ended 30 June 2013

Relevant facts and circumstances: You maintain a dependent spouse. Your spouse was born after 1 July 1952. Your spouse has ongoing health issues which have led to her having a permanent incapacity to work. Your spouse does not receive a disability support pension. Your spouse is not wholly engaged in caring for an invalid relative, nor does she receive any type of carer payment or allowance.

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 2012-13 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 or a carer 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. This section also defines a carer spouse as a spouse of the taxpayer who is wholly engaged in caring for an invalid relative, or who receives a carer allowance, carer payment or carer service pension. In your case, it is accepted that you contributed to the maintenance of your spouse, and, for the 2012-13 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, is not considered an invalid spouse nor a carer spouse as per the above definitions, you do not fulfil all of the criteria to be able to claim the dependent tax offset in respect of your spouse.