| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your written advice
Authorisation Number: 1012691806841
Ruling
Subject: Spouse tax offset
Question
Are you entitled to a spouse tax offset?
Answer
Yes.
This ruling applies for the following period
Year ended 30 June 2014
The scheme commenced on
1 July 2013
Relevant facts
You and your spouse are Australian residents.
Your adjusted taxable income is less than $150,000.
You maintained your spouse.
You do not have any dependent children.
Neither you nor your spouse received parental leave pay.
Your spouse received some bank interest.
Your spouse also received an income stream from an allocated pension. This pension is tax free.
Your spouse was born before 1 July 1952.
Relevant legislative provisions
Income Tax Assessment Act 1936 Section 159J
Reasons for decision
Spouse tax offset
Section 159J of the Income Tax Assessment Act 1936 (ITAA 1936) outlines the requirements and conditions necessary for a person to be eligible to claim a spouse tax offset.
Under the amended subsection 159J(1C) of the ITAA 1936, a taxpayer is not entitled to a tax offset in respect of a dependent spouse if the dependant was born on or after 1 July 1952.
As your spouse was born before this date, this requirement is satisfied.
The maximum dependent spouse tax offset available to eligible taxpayers for 2013-14 is $2,471. However, where your spouse derives adjusted taxable income, the tax offset otherwise allowable is reduced by $1 for every complete $4 by which the spouse's adjusted taxable income exceeds $282. The 2013-14 spouse tax offset cuts out when the spouse's adjusted taxable income is $10,166 or more.
For the tax offset purposes, adjusted taxable income has the same meaning as in A New Tax System (Family Assistance) Act 1999, and disregarding clauses 3 and 3A of Sch 3 to that Act.
Adjusted taxable income is the sum of the following amounts:
• taxable income,
• reportable superannuation contributions,
• total net investment loss,
• adjusted fringe benefits,
• certain tax free government pensions or benefits
• target foreign income,
less the amount of the deductible child maintenance expenditure for that year.
Tax free pension or benefit is further defined and lists various pensions and payments paid under the Social Security Act 1991, Veterans Entitlements Act 1986 and Military Rehabilitation and Compensation Act 2004.
Your spouse's allocated pension is not a tax free pension or benefit listed and is therefore not included in calculating their adjusted taxable income.
As you meet all the other requirements in relation to claiming a spouse tax offset, you are entitled to include the relevant spouse tax offset amount on your 2014 tax return.