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Edited version of private advice
Authorisation Number: 1012660944509
Ruling
Subject: Dependant (invalid and carer) tax offset
Question
Are you entitled to claim the dependant (invalid and carer) tax offset?
Answer
No.
This ruling applies for the following period
Year ended 30 June 2013
The scheme commences on
1 July 2012
Relevant facts and circumstances
You contribute to the maintenance of your spouse.
You are unable to work due to a workplace injury.
You are in receipt of weekly workers compensation payments. The benefit you receive includes an additional amount for a dependent spouse.
Your spouse is your full-time career. Your spouse is not in receipt of a carer payment or carer allowance.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subdivision 61-A
Reasons for decision
The Government announced in the 2012-13 Budget that they would consolidate eight existing dependency tax offsets into a single non-refundable offset that is only available to resident taxpayers who maintain a resident dependant who is unable to work due to invalidity or care obligations. The legislation passed through parliament on 28 June 2013 and the changes applied from 1 July 2012.
To be eligible to receive the Dependant (invalid and carer) tax offset the taxpayer must have contributed to the maintenance of another individual who is an eligible dependant.
An eligible dependant includes a taxpayer's spouse, who has carer obligations. The spouse must also be:
• receiving a carer payment or carer allowance under the Social Security Act 1991(SSA) ; or
• wholly engaged in providing care to a relative who receives: a disability support pension or a special needs disability pension under the SSA ; or an invalidity service pension under the Veterans' Entitlements Act 1986 .
For the purposes of this tax offset a 'relative' is the taxpayer's child, brother or sister, or the brother or sister of your spouse aged 16 years or over.
In your situation it is accepted that you contribute to the maintenance of your spouse and that you receive an additional amount in your weekly compensation benefits payment for your dependent spouse.
However your spouse does not receive a carer payment or carer allowance under the SSA. Whilst it is accepted that they provides care for you, you are not considered to be a relative as defined under the legislation for the purposes of this tax offset.