Changes for the Dependent Spouse Tax Offset
Although you cannot claim the Dependent Spouse Tax Offset for tax years after 2014, you can claim the Dependent Invalid and Carer Tax Offset for future returns. This offset is for taxpayers who maintain a spouse or relative who is disabled. In order to qualify for this offset, you will need to maintain care for an invalid spouse, parent, child, and brother or sister aged 16 years or older. Relatives will need to be in direct relation to you or your spouse.
In addition to this, the dependent must meet the following requirements:
- your dependent must be receiving a carer allowance or carer payment
- they must be receiving a disability support pension
- they need to receive a special needs disability support pension under the Social Security Act 1991 or an invalidity service pension under the Veterans’ Entitlement Act 1986
For more information on this offset, please go to our blog 10 Australian Tax Offsets To Claim in 2016.
Can I still claim the Dependent Spouse Tax Offset?
In 2013, the government reformed the dependent spouse tax offset. Not only that, but in the beginning of 1 July, 2014, the dependent spouse tax offset was abolished. In other words, you won’t be able to claim the offset on your future tax returns.
Fortunately, when filing prior year returns, you can claim the Dependent Spouse Tax Offset for prior year returns going back to 2014.
Dependent Tax Offset Limitations
For 2013-2014, you cannot claim this offset for a spouse born on or after 1 July 1952. This has been pushed back nearly twenty years from the 2011-2012 birth requirement of 1 July 1971.
You will be able to claim the dependent spouse tax offset regardless of your spouse’s date of birth if you have a dependent spouse who is an invalid or a carer or if you’re eligible to claim any of the following;
- zone tax offset
- overseas forces tax offset
- overseas civilian tax offset
You can no longer claim them as part of question T1 – Spouse (without dependent child or student). You must claim them at item T5 – Zone or overseas forces. To claim the invalid and carer tax offset, you must claim them at item T7 – Dependent (invalid and carer) tax offset. Read the rest of this entry »