| Disclaimer This edited version has been archived due to the length of time since original publication.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: 1012883429510
Date of advice: 23 September 2015
Ruling
Subject: Tax offset
Question
Are you entitled to a dependent spouse or dependent (invalid and carer) tax offset?
Answer
No.
This ruling applies for the following periods
Year ended 30 June 2014
Year ended 30 June 2015
The scheme commenced on
1 July 2013
Relevant facts
Your spouse has a medical condition and is classed as invalid and unable to work.
You or your spouse, do not claim any Centrelink allowances. Your spouse would be eligible for a disability pension but your taxable income is too high.
Your spouse has no taxable income for the 2013-14 and 2014-15 financial years.
Your spouse was born after 1 July 1952.
You pay 100% of the care, food, health and maintenance costs for your spouse.
Your spouse does not receive a disability support pension or invalidity service pension.
Relevant legislative provisions
Income Tax Assessment Act 1936 Section 159J
Income Tax Assessment Act 1997 Section 61-10
Reasons for decision
Spouse tax offset
The legislation in relation to claiming a tax offset for a dependent spouse was amended recently. The amended legislation applies to assessments for the 2012-13 financial year and later income years.
Under the amended subsection 159J(1C) of the Income Tax Assessment Act 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 after this date, you are not entitled to a dependent spouse tax offset.
Dependent (invalid and carer) tax offset
Under section 61-10 of the Income Tax Assessment Act 1997, certain taxpayers are entitled to a dependent (invalid and carer) tax offset.
You may be entitled to a tax offset if you maintained your spouse during the income year and your spouse was receiving
(a) a disability support pension or a special needs disability support pension under the Social Security Act 1991; or
(b) an invalidity service pension under the Veterans' Entitlements Act 1986.
In your circumstances, your spouse does not receive a disability support pension or invalidity service pension.
Therefore you are not entitled to a dependent (invalid and carer) tax offset.
We acknowledge, your specific circumstances, however, the current legislation does not provide any tax offset or concession in your situation.