Private ruling: Tax offset for dependant child
Published: January 2013
Ruling period: Year ended 30 June 2012
Date scheme commenced: 1 July 2011

Ruling: Q1: Are you entitled to a tax offset for your child living overseas? | A1: No.

Relevant facts and circumstances: You and your partner live in Australia and you have a dependant child living overseas. Your child is attending pre-primary school. You financially support your child and send money for their education and living expenses. You intend for your child to join you in Australia in the near future.

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

Reasons for decision: Summary: An Australian resident who contributes to the maintenance of a dependant may be entitled to a tax offset under section 159J of Income Tax Assessment Act 1936 . However, the dependant must also be an Australian resident. In your case, as your child is living overseas, she is not considered an Australian resident for tax purposes. Therefore no tax offset is available. There is no other provision which allows for a dependant tax offset where a resident taxpayer contributes to the maintenance of a dependant child whether they are or are not a resident of Australia. That is, a child or student dependant tax offset is not available even if your child was an Australian resident.

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.