Private ruling: Tax offsets
Date of advice: 19 September 2023
Published: 6 November 2023
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you eligible to claim the Seniors and Pensioners Tax Offset? | A1: No.

Relevant facts and circumstances: You have received a government allowance since 20XX. Your spouse has also received the same government allowance since 20XX. Neither you, nor your spouse receive any other government allowances or payments. You have part time employment. You lived with your spouse during the entire income year. Your rebate income is $XXXX.

Relevant legislative provisions: Income Tax Assessment Act 1936 section 160AAAA

Reasons for decision: Summary: Subsection 160AAAA(1) of the Income Tax Assessment Act 1936 (ITAA 1936) provides that a taxpayer who is an individual (other than in the capacity as trustee) is entitled to a rebate of tax in the taxpayer ' s assessment in respect of income of a year of income of an amount (if any), ascertained in accordance with the regulations. You may be eligible to claim the seniors and pensioners tax offset (SAPTO) only if you meet both of the following conditions: | Detailed Reasoning - Condition 1:: You meet this condition if any of the following applied to you in the financial year ended 30 June 2023. (a) You showed at item 6 in your tax return an Australian Government pension or allowance from Centrelink, or a pension, allowance or benefit from the Department of Veterans' Affairs (DVA). (b) You satisfied the Centrelink age pension age requirement and were eligible for an Australian Government age pension during the financial year ended 30 June 2023, but did not receive it because you did not make a claim or because of the application of the income test or the assets test, and you satisfy one of the following: • you have been an Australian resident for age-pension purposes for either 10 continuous years or for more than 10 years of which five years were continuous • you have a qualifying residence exemption (because you arrived in Australia as a refugee or under a special humanitarian program) • you are a woman who was widowed in Australia (at a time when both you and your late partner were Australian residents), you have made a claim for the age pension and you had two years residence immediately before your claim • you received a widow B pension, widow allowance, mature age allowance or partner allowance immediately before turning age-pension age • You would qualify under an international social security agreement. (c) You satisfied the veteran pension age test and were eligible for a pension; allowance or benefit from Veterans' Affairs during the financial year ended 30 June 2023, but did not receive it because you did not make a claim or because of the application of the income test or the assets test, and you satisfy either of the following: • you are a veteran with eligible war service, or • You are a Commonwealth veteran, allied veteran or allied mariner with qualifying service. | Detailed Reasoning - Condition 2:: You meet this condition if any of the following applied to you in the financial year ended 30 June 2023. • You did not have a spouse, and your rebate income was less than $50,119 • You had a spouse, and the combined rebate income of you and your spouse was less than $83,580 • At any time during the year you and your spouse had to live apart due to illness or because one of you was in a nursing home, and the combined rebate income of you and your spouse was less than $95,198. Combined rebate income includes an amount in respect of which a trustee of a trust estate is liable to be assessed (and pay tax) under section 98 of the ITAA 1936. To be entitled to the offset, your rebate income must be less than the relevant cut-out threshold in the table below. Status Maximum tax offset amount Shading-out threshold Cut-out threshold Single $2,230 $32,279 $50,119 Each partner of a couple $1,602 $28,974 $41,790 Each partner of an illness separated couple $2,040 $31,279 $47,599 In your case, you are not eligible for SAPTO as your rebate income is over the cut-out threshold of $41,790.