Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Where, during the year of income, a taxpayer contributes to the maintenance of a person (in this section referred to as a dependant ) specified in column 2 of the table set out in subsection (2) and that person is a resident, the taxpayer is entitled, in his or her assessment in respect of income of that year of income, to a rebate of tax ascertained in accordance with this section.
(1A) A taxpayer is not entitled in his or her assessment in respect of income of a year of income after the year of income that ends on 30 June 1976 to a rebate under this section in respect of a person by reason that the person is included in class 3 or class 4 in the table set out in subsection (2).
(1AB) A taxpayer is not entitled, in his or her assessment in respect of a year of income, to a rebate under this section in respect of a dependant included in class 1, 2, 5 or 6 in the table in subsection (2) if:
(a) for a dependant included in class 1--the taxpayer's adjusted taxable income for the year is more than the income limit for family tax benefit (Part B) for the year; or
(b) for a dependant included in class 2, 5 or 6--subsection (1AC) applies to the taxpayer for the year.
(1AC) This subsection applies to a taxpayer for a year of income if the sum of:
(a) the taxpayer's adjusted taxable income for the year; and
(b) if the taxpayer has a spouse during the year--the spouse's adjusted taxable income for the year; and
(c) if the taxpayer has a spouse during only part of the year--this amount:
is more than the income limit for family tax benefit (Part B) for the year.
Note: If the taxpayer has a different spouse during different parts of the year, the adjusted taxable income of each spouse will be included under paragraph (c).
(1B) Where, but for subsection (1A), a taxpayer would be entitled in his or her assessment in respect of income of a year of income to a rebate under this section in respect of a dependant included in class 3 or 4 in the table in subsection (2), the entitlement of the taxpayer to a rebate under this section in that assessment in respect of any dependant included in class 2 of that table shall be calculated as if the reference in that table to $1,711 were a reference to $2,051.
(1C) A taxpayer is not entitled, in his or her assessment in respect of a year of income, to a rebate under this section in respect of a dependant included in class 1 in the table in subsection (2) if the dependant was born on or after 1 July 1971.
(1D) A taxpayer is not entitled, in his or her assessment in respect of a year of income, to a rebate under this section in respect of a dependant who is an invalid spouse or a carer spouse for the purpose of class 5 in the table in subsection (2) if the taxpayer is also entitled to a rebate in respect of the dependant being included in class 1 in the table.
(1E) If a taxpayer is entitled, in his or her assessment in respect of a year of income, to a rebate under this section in respect of a dependant who is an invalid spouse included in class 5 in the table in subsection (2), the taxpayer is not also entitled to a rebate in respect of that dependant being included as a carer spouse in class 5 in the table.
(2) Subject to this section, the amount of the rebate allowable in the assessment of the taxpayer in respect of a dependant under this section is the relevant amount specified in column 3 of the following table:
|
Column 1 |
Column 2 |
Column 3 |
|
1 |
$2,100 |
|
|
2 |
$1,711 |
|
|
3 |
In respect of 1 such child--$376 |
|
|
|
|
In respect of each other such child--$282 |
|
4 |
$376 |
|
|
5 |
In respect of an invalid relative--$770 In respect of an invalid spouse--$2,100 In respect of a carer spouse--$2,100 |
|
|
6 |
$1,540 |
(3) Where:
(a) the taxpayer contributes to the maintenance of a dependant during part only of the year of income; or
(aa) a dependant is a resident during part only of the year of income; or
(b) during the whole or part of the year of income, 2 or more persons contribute to the maintenance of a person who is a dependant in relation to 1 or more of the persons so contributing; or
(c) a dependant, being the spouse of the taxpayer, is the spouse of the taxpayer during part only of the year of income; or
(d) a dependant, being a child-housekeeper, is wholly engaged in keeping house for the taxpayer during part only of the year of income; or
(e) a dependant, being a child included in class 3 in the table in subsection (2), a student or an invalid relative, is such a dependant during part only of the year of income; or
(f) a dependant, being a spouse of the taxpayer, is an invalid spouse or a carer spouse during part only of the income year;
the rebate allowable to the taxpayer in respect of that dependant shall be such part of the relevant amount specified in column 3 of that table as, in the opinion of the Commissioner, is reasonable in the circumstances.
(3A) In the application of the definition of resident in subsection 6(1) for the purposes of this section, a dependant included in class 1, 2, 3 or 4, and a child, invalid spouse or carer spouse of the taxpayer being a dependant included in class 5, in the table in subsection (2) shall be deemed to have a domicile in Australia at all times when the taxpayer has a domicile in Australia.
(4) The amount of the rebate otherwise allowable under this section in respect of a dependant shall be reduced by $1 for every $4 by which the dependant's adjusted taxable income for the year of income exceeds $282.
(5) Where, during the whole or a part of the year of income, the taxpayer and a person of a kind specified in column 2 of the table in subsection (2) resided together and that person has an adjusted taxable income for that year, then, for the purposes of this section, the taxpayer shall be regarded, unless the contrary is established to the satisfaction of the Commissioner, as having contributed to the maintenance of that person during the whole or that part of the year of income, as the case may be.
(5A) Subject to subsection (5B), where, but for this subsection, a taxpayer would, by reason that he or she contributed to the maintenance of 2 or more dependants included in class 1 in the table in subsection (2) during the whole or a part of the year of income, be entitled in his or her assessment in respect of income of the year of income to more than one rebate under this section, the taxpayer shall be regarded as having contributed to the maintenance of only one of those dependants during the whole or that part of the year of income, as the case may be, being the dependant in respect of whom the lesser, or least, of the rebates would, but for this subsection, be allowable to the taxpayer under this section in respect of those dependants.
(5B) Where subsection (5A) applies but the Commissioner is of the opinion that, because of special circumstances, it would be reasonable to regard the taxpayer as having contributed during the whole or a part of the year of income to the maintenance of a dependant included in class 1 in the table in subsection (2), other than the dependant in respect of whom a rebate is allowable under this section by virtue of the operation of subsection (5A), the taxpayer shall be regarded as having contributed to the maintenance of that other dependant only and the rebate allowable to the taxpayer under this section in respect of that other dependant shall be such amount, not exceeding the relevant amount specified in column 3 of the table in subsection (2), as is, in the opinion of the Commissioner, reasonable in the circumstances.
(5C) Where:
(a) during the whole or a part of the year of income, a taxpayer contributed to the maintenance of 2 or more dependants included in class 1 in the table in subsection (2); and
(b) by virtue of the operation of subsection (4), a rebate is not allowable to the taxpayer under this section in respect of one of those dependants;
the taxpayer shall be regarded as not having contributed to the maintenance of any of those dependants during the whole or that part of the year of income, unless the Commissioner is of the opinion that, because of special circumstances, it would be unreasonable to do so, in which case the rebate (if any) allowable under this section in the assessment of the taxpayer in respect of income of the year of income in respect of a dependant included in class 1 in that table shall be such amount, not exceeding the relevant amount specified in column 3 of that table, as is, in the opinion of the Commissioner, reasonable in the circumstances.
(5CA) For the purposes of subsections (5A), (5B) and (5C), treat a dependant that is an invalid spouse or a carer spouse for the purpose of class 5 in the table in subsection (2) as a dependant included in class 1 in the table.
(5D) Where, by reason that, during the whole or a part of the year of income, a taxpayer contributes to the maintenance of a dependant included in class 1 in the table in subsection (2) or a dependant that is an invalid spouse or a carer spouse for the purpose of class 5 in the table in subsection (2), the taxpayer is entitled, or would, but for subsection (1C) or (4), be entitled, in his or her assessment in respect of income of the year of income, to a rebate under this section, a child of the taxpayer shall be deemed not to have been engaged in keeping house for the taxpayer during the whole or that part of the year of income, as the case may be.
(6) In this section:
"adjusted taxable income" has the same meaning as in the A New Tax System (Family Assistance) Act 1999 , except that, for the purposes of this section, clauses 3 and 3A of Schedule 3 to that Act are taken not to have been enacted.
"carer spouse" means a person who is a spouse of the taxpayer, being a person:
(a) who is wholly engaged in providing care to an invalid relative; or
(b) to whom a carer allowance or carer payment is being paid pursuant to the Social Security Act 1991 or to whom a carer service pension is being paid pursuant to the Veterans' Entitlements Act 1986 .
"child-housekeeper" means the child of a taxpayer who is wholly engaged in keeping house for the taxpayer.
"income limit for family tax benefit (Part B)" means the amount specified in subclause 28B(1) of Schedule 1 to the A New Tax System (Family Assistance) Act 1999 , as indexed under Part 2 of Schedule 4 to that Act.
"invalid relative" means a person who is not less than 16 years of age and is a child, brother or sister of the taxpayer or of the taxpayer's spouse, being a person:
(a) to whom a disability support pension or a special needs disability support pension is being paid under the Social Security Act 1991 ; or
(c) in respect of whom the taxpayer obtains a certificate issued by a medical officer of the Health Department, or by a medical practitioner appointed by the Families Secretary for the purpose of examining claimants for disability support pensions under that Act, certifying that the person has a continuing inability to work within the meaning of Part 2.3 of that Act.
Note: Section 960- 255 of the Income Tax Assessment Act 1997 may be relevant to determining relationships for the purposes of the definition of invalid relative .
"invalid spouse" means a person that is a spouse of the taxpayer, being a person who satisfies the requirements in paragraph (a) or (c) of the definition of invalid relative .
"student" means a person who is less than 25 years of age and is receiving full-time education at a school, college or university.