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Ruling
Subject: Spouse tax offset
Question
Are you entitled to a dependent spouse tax offset?
Answer
Yes.
This ruling applies for the following period:
Year ended 30 June 2011
The scheme commences on:
1 July 2010
Relevant facts and circumstances
You and your spouse hold temporary visas.
You and your spouse have lived in Australia for more than six months and intend to settle in Australia permanently.
Neither you nor your spouse was eligible for family tax benefit (FTB) Part B.
Your adjusted taxable income (ATI) did not exceed $150,000 and your spouse's ATI did not exceed $9,254 in the 2010-11 financial year.
Relevant legislative provisions
Income Tax Assessment Act 1936 section 159J
Reasons for decision
Under section 159J of the Income Tax Assessment Act 1936, a taxpayer maintaining a person who is a dependant, as specified in that section, may be entitled to a tax offset.
A taxpayer maintains a dependant if they live in the same house and the taxpayer gave them food, clothing and lodging or helped them pay for their living, medical and educational costs.
A taxpayer is eligible to claim a dependent spouse tax offset for any period in 2010-11 that they had a spouse and met all following conditions:
· the taxpayer maintained their spouse
· the spouse was a resident
· the taxpayer was a resident at any time in 2010-11
· neither the spouse (if they were the taxpayer's spouse during that period) nor the taxpayer were entitled to FTB Part B or were only entitled to it at the shared-care rate
· the taxpayer had adjusted taxable income less than $150,000, and
· the spouse has adjusted taxable income less than $9,254.
As you are considered a resident since your arrival in Australia and are not entitled to FTB Part B, you meet all the conditions for claiming a dependent spouse tax offset. You are therefore entitled to a partial spouse tax offset for the 2010-11 income year from the date of arrival in Australia.
To work out the spouse tax offset you can claim refer to page 55 (adjusted taxable income) and page 58 (dependent spouse tax offset worksheet) of the publication NAT 0976-6.2011 TaxPack 2011.