Overview
The Australian tax system offers a range of tax benefits including credits, refunds and offsets to support families. You need a tax file number to be eligible for any of these tax concessions, as do your spouse and your children with income, superannuation or investments.
Your 'spouse' includes another person (whether of the same sex or opposite sex) who:
- you were in a relationship with that was registered under a prescribed state or territory law
- although not legally married to you, lived with you on a genuine domestic basis in a relationship as a couple.
Income tax offsets (formerly rebates) for families
Tax offsets reduce the amount of tax you pay. We use the information on your tax return to calculate your income tax offsets. Depending on your circumstances, you may be eligible for one or more of the following offsets:
- dependent spouse (without dependent child or student)
- child-housekeeper or housekeeper
- parent, spouse's parent or invalid relative
- spouse superannuation
- private health insurance
- net medical expenses
- government benefits (for example, government pensions or Centrelink payments)
- low income (such as part time participation in the workforce)
- senior Australians.
Investing on behalf of children
Investments (including savings accounts and shares) in the name of dependent children under the age of 16 attract special income taxation rules. If the child's tax file number is not supplied to the investment body, they must withhold tax at 46.5% of interest earnings. Earnings from a child's investments must be declared by the person who rightfully owns and controls the investment.
Superannuation for families
Super is important in planning for your retirement. You may be eligible for a super co-contribution, or for a tax offset for making contributions to your spouse's superannuation.
Family breakdown
The tax system has provisions in place to assist with easing the financial burden of separating families. These provisions apply to capital gains tax, superannuation and income from child and partner support payments.
Other topics of interest to families
You may also be interested in first home saver accounts, caring for the disabled, Medicare levy and tax affairs of deceased estates.
Sections within Overview
Last Modified: Thursday, 10 January 2013