Private ruling: Dependent tax offset
Published: October 2013
Ruling period: Year ended 30 June 2013
Date scheme commenced: 1 July 2012

Ruling: Q1: Are you entitled to claim a dependent tax offset in respect of your spouse in the 2012-13 financial year? | A1: No

Relevant facts and circumstances: You maintain a dependent spouse. You and your spouse are both residents of Australia for tax purposes. 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, a special needs disability support pension or an invalidity service pension. Your adjusted taxable income is below the combined income threshold for Family Tax Benefit Part B.

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

Reasons for decision: Summary: A resident taxpayer that contributes to the maintenance of an invalid spouse may be entitled to claim the dependant (invalid and carer) tax offset under subdivision 61-A of the Income Tax Assessment Act 1997 . To be eligible for a dependant (invalid and carer) 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 spouse is a resident of Australia for tax purposes; · your adjusted taxable income must be less than the income threshold for Family Tax Benefit Part B; and · your spouse must be in receipt of a disability support pension, a special needs disability support pension or an invalidity 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 does not receive a disability support pension, a special needs disability support pension or an invalidity service pension, you do not fulfil all of the criteria to be able to claim the dependent (invalid and carer) tax offset in respect of your spouse.