Tax offsets - what they doParent or parent in law tax offset
Dependant tax offsets - parent or parent in law
Dependant tax offsets - a parent or parent in law is worth $1204, so can you claim your mum and dad?
The rebate is allowed for each parent that qualifies as a dependant.
Dependency involves a great deal more than mowing their lawns occasionally and giving them generous Christmas presents.
Answer this question….
Would the following dependant qualify as a dependent parent?
Your grandmother?
Yes No
Not a parent
Answer this question….
Would the following dependant qualify as a dependent parent?
Father of your de facto wife?
Yes No
Refer to sec 159J(6) definition
Section 159J(4) ignores the first $282 of a dependant's income.
However, for every $4 of income in excess of $282, it reduces the tax offset by $1.
Full details in the
topic on separate net income
There is something of a Catch 22 operating with the separate net income restriction for parent rebate. Can you see what it is?
Most of the eligible persons would be eligible for some kind of government assistance, which would be included in their separate net income, thus reducing the rebate substantially, if not completely
Section 159H(1) says that the
tax offsets described in sections 159H to 159Z (subdivision A) apply if, and only if, the taxpayer is a resident.The
dependant must also be a resident.Section 159J(1) states that where a person contributes to the maintenance of a dependant specified in section 159J(2),
and that dependant is a resident then he is entitled to a tax offset.For further details, refer to the
topic on residence requirements for rebatesSection 159J(3) empowers the Commissioner to allow only so much of the tax offset as is 'reasonable in the circumstances.'
In practice this is done on a proportionate basis - for further details refer to the
topic on partial offsets.
related topics | apprentice tax practitioner program | tax law