The Dependant Spouse Offset is being phased out.
Age-based restrictions since 1 July 2011
From 1 July 2011 the dependent spouse tax offset is only available for a spouse
- born before 1 July 1971; or
- unable to work due to invalidity or carer obligations.
.. and further from 1 July 2012
From 1 July 2012 the offset has been further restricted to dependent spouses born before 1 July 1952
Family Tax Benefit Part B exclusion: The offset is excluded for taxpayers whose adjusted taxable income (see below) is more than $150,000, or a member of a Family Tax Benefit Part B family.
Value of offset (indexed annually)
For those still eligible to claim, the maximum dependent spouse tax offset value is:
- $2,471 in 2013-14
- $2,423 in 2012-13
- $2,355 in 2011-12
Dependent spouse’s income test
The value of the offset is reduced by $1 for every $4 by which the adjusted taxable income (see below) of the dependent spouse exceeds $282. This removes the offset value at the upper limit of adjusted taxable income of:
- $10,166 (2013-14)
- $9,974 (2012-13)
- $9,702 (2011-12)
Not Refundable: The offset can be used to reduce tax payable, but is not refundable, nor is it available to offset the medicare levy.
Residence: In general, both the taxpayer and dependant must be resident for tax purposes, and part-year claims are possible on that basis.
Adjusted Taxable Income formula
“Adjusted Taxable Income” for the purposes of claims means the total of:
+ adjusted fringe benefits (reportable fringe benefits multiplied by 0.535)
+ tax-free pensions or benefits
+ target foreign income (income from overseas not reported in your tax return)
+ reportable superannuation contributions
+ net investment lossesless deductible child maintenance expenditures.
Dependent (Invalid and Carer) Tax Offset (“DICTO”)
Taxpayers with a dependant who is genuinely unable to work due to a carer obligation or a disability are generally eligible for the DICTO which continues to be available. See details of the Invalid and Carer Tax Offset here.
This page was last modified on 7 January 2015