Private ruling: Dependant tax offset
Published: March 2014
Ruling period: Year ended 30 June 2013
Date scheme commenced: 1 July 2012

Ruling: Q1: Are you entitled to a Dependant (Invalid and Carer ) tax offset for your relative? | A1: No


Relevant legislative provisions: Income Tax Assessment Act 1997 Section 61-10 | Income Tax Assessment Act 1997 Subdivision 61-A

Reasons for decision: Summary: The Government announced in the 2012-13 Budget they would remove the eight existing dependency tax offsets. These included the invalid relative tax offset, the parent tax offset and the housekeeper tax offset. From 1 July 2012, taxpayers can claim a new tax offset called the 'Dependant (Invalid and Carer) tax offset'. The Dependant (Invalid and Carer) tax offset is contained in Subdivision 61-A of the Income Tax Assessment Act 1997 . Taxpayers can only claim the Dependant (Invalid and Carer) tax offset for dependants who are in receipt of a government payment as an invalid or carer, or dependants who provide full-time care for someone who receives a government payment as an invalid. In your case your relative has not been in Australia long enough to qualify for an Australian pension. While we acknowledge that you are paying for their basic daily care, clothing and out of pocket medical expenses at the home, your relative is not in receipt of a government payment as an invalid or carer. Therefore you are not entitled to a Dependant (Invalid and Carer) tax offset.

Relevant facts: You, your spouse and relative have been residents of Australia since mm/yyyy. | Your relative was included in your visa application as a dependant. They were granted the same visa. | You all have qualified for Medicare since receiving your visas. However you have been excluded from other government entitlements and will have a xx year wait before being eligible for an Australian aged or disability pension. | Due to an accident your relative was assessed and became eligible to receive residential high care. | A government department assessed their income and ascertained that they were eligible to be a fully supported resident and their accommodation was to be subsidised, but they had to pay the basic daily fee for high care. | You are paying the basic daily fee and all their medical purchases and medicines. You also support them with their personal items and clothing. | Your relative is not in receipt of an Australian Government pension or allowance.