Private ruling: Tax offset - Dependant (invalid and carer)
Published: March 2014
Ruling period: Year ended 30 June 2013 | Year ending 30 June 2014
Date scheme commenced: 1 July 2012

Ruling: Q1: Are you entitled to claim the dependant (invalid and carer) tax offset? | A1: No.

Relevant facts and circumstances: You maintain a dependent spouse. You and your spouse are both residents of Australia for tax purposes. You are an invalid pensioner. Your spouse is your full-time carer. Your spouse is not in receipt of a carer payment or carer allowance.

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 due to invalidity or care obligations. The legislation passed through parliament on 28 June 2013 and the changes applied from 1 July 2012. To be eligible to receive the Dependent (invalid and carer) tax offset the taxpayer must have contributed to the maintenance of another individual who is an eligible dependant. An eligible dependant includes a taxpayer's spouse, who has carer obligations. The spouse must also be: • receiving a carer payment or carer allowance under the Social Security Act 1991(SSA) ; or • wholly engaged in providing care to a relative who receives: a disability support pension or a special needs disability pension under the SSA ; or an invalidity service pension under the Veterans' Entitlements Act 1986 . For the purposes of this tax offset a 'relative' is the taxpayers child, brother or sister, or the brother or sister of your spouse aged 16 years or over. In your situation your spouse is not receiving a carer payment or carer allowance under the SSA. Whilst it is accepted that she/he provides care for you, you are not considered to be a relative as defined under the legislation for the purposes of this tax offset. As your spouse does not meet the requirements of the legislation you are not entitled to claim the Dependent (invalid and carer) tax offset.