dependant tax offset claims

The Tax Office has stopped all tax returns with a Dependant (Invalid and Carer) Tax Offset claim and is reviewing them, following an unexpected upsurge in the number of individuals that have made claims for the new tax offset.

The new Dependant (Invalid and Carer) Tax Offset is only available to individuals who maintain a dependant who is genuinely unable to work due to invalidity or carer obligations. However more than 41,000 taxpayers have made claims, prompting the Tax Office to review all tax returns and follow up on any notices of assessment that have already issued.

The Tax Office initially expected that very few individuals would be eligible to receive the new tax offset under legislation that came into effect for the 2012-13 tax year.

Under the legislation, the following eight dependency tax offsets below were consolidated into a single, streamlined and non-refundable tax offset: invalid spouse tax offset, carer spouse tax offset, housekeeper tax offset, housekeeper (with child) tax offset, child-housekeeper tax offset, child-housekeeper (with child) tax offset, invalid relative tax offset, and parent/parent-in-law tax offsets.

Individuals who were eligible to claim more than one tax offset amount in respect of multiple dependants are still be able to do so. However, individuals who received the zone or overseas forces or overseas civilians tax offsets are not entitled to claim the new offset, but can still claim any or all of the other eight offsets at T5 Zone or overseas forces.

Unless an individual is eligible for a zone or overseas tax offset, they are no longer able to claim offsets for a spouse born on or after July 1, 1952, a parent, a parent-in-law, or an invalid relative.

Consult this office to check if your claim for the Dependant (Invalid and Carer) Tax Offset is valid.