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 16 February 2015