ATO Interpretative Decision

ATO ID 2001/429 (Withdrawn)

Income Tax

Dependant Tax Offset - full time student sibling
FOI status: may be released

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.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 sibling?

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 sibling?

Facts

The taxpayer provided their sibling with food and clothing and covered the cost of other living expenses.

The taxpayer's sibling is a full-time student under the age of 16.

The taxpayer and their sibling reside together.

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:

•: Spouse
•: Child-housekeeper
•: Invalid relative
•: 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 sibling is not their child and as they are 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.

Date of decision: 14 September 2001

Legislative References:
Income Tax Assessment Act 1936
section 159J
subsection 159J(6)

Keywords
Dependant rebates
Rebates
Child housekeeper rebates

Business Line: Small Business/Individual Taxpayers

Date of publication: 4 October 2001

ISSN: 1445-2782

history

	Date:	Version:
	14 September 2001	Original statement
You are here	28 October 2005	Archived

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