Private ruling: Tax offsets - dependent
Date of advice: 30 September 2015
Published: September 2015
Ruling period: Year ended 30 June 2015
Date scheme commenced: 1 July 2014

Ruling: Q1: Are you entitled to claim a tax offset in respect of your dependent parents? | A1: No

Relevant facts and circumstances: You contribute to the maintenance of your dependent parents through regular monetary payments. Your parents are not residents of Australia for tax purposes.

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

Reasons for decision: Summary: A resident taxpayer that contributes to the maintenance of a dependent may be entitled to claim a dependent tax offset under section 61-10 of the Income Tax Assessment Act 1997 . To be eligible for a dependent tax offset in the 2014-15 financial year and beyond, the following conditions must be fulfilled: • you must contribute to the maintenance of your spouse, your parent, your spouse's parent, or an invalid relative; • your dependent must be a resident of Australia; and • one of the following: • be in receipt of a disability support pension • be in receipt of an invalidity service pension • in respect of your spouse or spouse's parent, be in receipt of a carer allowance or carer payment paid in respect of an invalid relative; or • in respect of your spouse or spouse's parent, be wholly engaged in caring for an invalid relative over the age of 16 who is in receipt of a disability support pension or an invalidity service pension. In your case, you contribute to the maintenance of your parents. However, your parents are not residents of Australia, and are also ineligible to receive any of the payments listed above. As such you are ineligible to claim a dependent tax offset in respect of your dependent parents. Please note that the Commissioner does not have the discretion to change these requirements in respect of an individual taxpayer's personal circumstances.