ap_reb04

Housekeeper tax offset

Dependant tax offsets - a housekeeper is worth $1340 (add 266 to get $1606 if caring for a child), so what is a housekeeper?

A rebate is allowed under section 159 L of the 1936 Assessment Act to a taxpayer in respect of a housekeeper where:

The housekeeper is wholly engaged in keeping house for the taxpayer and in caring for one of the following....

Child of taxpayer under 16

Any child under 16 if the taxpayer qualifies for a notional rebate (that's the rebate for children that is no longer allowed as a rebate))

invalid relative- (class 5 of section 159J(2) ) for whom taxpayer is entitled to a rebate

spouse (legal or defacto) who is receiving a disability support pension or equivalent rehabilitation allowance

So, the housekeeper must be wholly engaged (that means full time) in keeping house for the taxpayer ... and caring for either children or invalids

Like the spouse rebate it is increased if a notional rebate is allowable for a child or student.(Section 159L(2))

It is unusual for a married taxpayer to be allowed a housekeeper rebate unless married to an invalid pensioner - an example of a married taxpayer who was allowed the rebate is given at para 17-120 of the CCH Master Tax Guide.

Where a rebate has been allowed for spouse or daughter housekeeper, section 159L(3) deems that a housekeeper can not have been 'wholly engaged' in keeping house at the same time.

NB section 159H(3) treats a taxpayer with a defacto spouse as if he/she is married even if no spouse rebate is allowed. A housekeeper rebate will be allowed to a married taxpayer only if, in the opinion of the Commissioner, it is just to do so and then only to the extent that is reasonable in the circumstances.

Refer section 159L(4).

Defacto wife is a spouse - section 159H(3)

Separate net income

The separate net income of the housekeeper is NOT taken into account in working out the rebate, although unless the householder is an extremely generous employer, a large separate net income might indicate the housekeeper is not wholly engaged in keeping house

Residence qualification

The housekeeper must be wholly engaged in keeping house in Australia

Partial tax offsets

Section 159L(5) empowers the Commissioner to allow only so much of the tax offset as is 'reasonable in the circumstances' if the housekeeper is not wholly engaged in keeping house for the full year. In such cases, the rebate is apportioned on a time basis eg housekeeper employed for half the year, half the rebate allowed.