Private ruling: dependent tax offset
Published: September 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 invalid relative in the 2012-13 financial year? | A1: No

Relevant facts and circumstances: Your relative visited you from overseas during the 2011-12 financial year. During the visit you observed your relative was unwell and invited them to stay with you. Your relative then amended their visa to enable them to remain in Australia. You have since maintained your relative as their current visa forbids them from working or receiving Centrelink benefits such as the disability support pension.

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

Reasons for decision: Summary: A resident taxpayer that contributes to the maintenance of an invalid relative may be entitled to claim the dependent tax offset under section 159J of the Income Tax Assessment Act 1936 . To be eligible for a dependent tax offset in respect of an invalid relative in the 2012-13 financial year and beyond, the following conditions must be fulfilled: you must contribute to the maintenance of your invalid relative; your adjusted taxable income must be less than the income threshold for Family Tax Benefit Part B; and your invalid relative must be a person who is: · older than 16 years of age; · is your child, brother or sister; and · is in receipt of a disability support pension or a special needs disability support pension In your case, it is accepted that you contributed to the maintenance of your invalid relative, and, for the 2012-13 year, your income is less than the income threshold for Family Tax Benefit Part B. However, as your invalid relative does not receive a disability support pension or a special needs disability support pension, you do not fulfil all of the criteria to be able to claim the dependent tax offset in respect of your invalid relative.