ATO Interpretative Decision
ATO ID 2001/628 (Withdrawn)
Income Tax
Dependant Tax Offset - full time student grandchildFOI status: may be released
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This ATO ID is a straight application of the law and does not contain an interpretative decision.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Is the taxpayer entitled to a dependant tax offset under section 159J of the Income Tax Assessment Act 1936 (ITAA 1936) for maintaining a full time student grandchild?
Decision
No, the taxpayer is not entitled to a dependant tax offset under section 159J of the ITAA 1936 for maintaining a full time student grandchild?
Facts
The grandchild of the taxpayer and their spouse has lived with them for a number of years.
The parent of the grandchild is a drug addict and is supposed to be living with the taxpayer. However, due to the nature of the parent's addiction, the taxpayer and their spouse never know where the parent is. The taxpayer has not sought custody of the grandchild as the parent has threatened to remove the grandchild from the family's care if they attempted to do so.
The taxpayer's grandchild is a full-time student under the age of 25.
The taxpayer has incurred costs for education and maintaining the grandchild.
Reasons for Decision
Section 159J of the ITAA 1936 provides that if a taxpayer contributes to the maintenance of a person who is a resident of Australia during an income year, the taxpayer may be entitled to a tax offset.
The dependant tax offsets available under section 159J of the ITAA 1936 are for a:
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- Spouse
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- Child-housekeeper
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- Invalid relative
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- Parent of the taxpayer or parent of the taxpayer's spouse
The taxpayer is not maintaining a dependant spouse, invalid relative or parent.
A 'child-housekeeper' is defined in subsection 159J(6) of the ITAA 1936 as being a child of the taxpayer who is wholly engaged in keeping house for the taxpayer. The taxpayer's grandchild is not their child and as the grandchild is a full-time student cannot be 'wholly engaged' in keeping house for the taxpayer. The taxpayer is therefore not maintaining a dependant child-housekeeper.
The taxpayer is not considered to be maintaining a dependant under section 159J of the ITAA 1936 and is therefore not entitled to a tax offset.
Year of income: Year ended 30 June 2000 Year ended 30 June 2001 Year ending 30 June 2002
Legislative References:
Income Tax Assessment Act 1936
section 159J
subsection 159J(1A)
subsection 159J(6)
Keywords
Dependant rebates
Rebates
Dependant students
Child housekeeper rebates
ISSN: 1445-2782
| Date: | Version: | |
| 16 October 2001 | Original statement | |
| You are here | 28 October 2005 | Archived |