1 Offsets yu can claim Offsets In additin t claiming allwable deductins, yu may be entitled t claim tax ffsets. Tax ffsets (smetimes referred t as rebates) directly reduce the amunt f tax payable n yur taxable incme. In general, ffsets can reduce yur tax payable t zer but n their wn they can't get yu a refund. Benefit recipients The beneficiary tax ffset is available t taxpayers wh receive certain Australian Gvernment allwances and payments. Yu pay n tax fr the year if yu: receive the full amunt f any f the qualifying benefits and allwances fr the full year; and have n ther taxable incme. If yu have ther assessable incme yu may still need t pay sme tax. T claim the ffset, yu must enter the payment yu receive at the crrect item n yur tax return. We will autmatically calculate the ffset fr yu when we prcess yur tax return. Taxpayers with dependants Yu may be entitled t a tax ffset if yu maintained a dependent spuse brn befre 1 July Yu may be entitled t a tax ffset if yu maintained a dependant wh is an Australian resident fr tax purpses, is an invalid r carer and yur:
2 spuse child, brther r sister aged 16 years ld r lder spuse's child, brther r sister aged 16 years ld r lder parent, r spuse s parent. Health insurance Australian tax system ffers a range f tax benefits t supprt families, including credits, refunds and ffsets. Family members shuld als be aware f the implicatins f investing n behalf f children and making cntributins t their spuse's super. Yur entitlement t a private health insurance rebate r tax ffset depends n yur incme level. If yu have private health insurance: the amunt f private health insurance rebate yu are entitled t receive is reduced if yur incme is mre than a certain amunt we will calculate the amunt f private health insurance rebate yu are entitled t receive when yu ldge yur tax return. Yu can claim yur private health insurance rebate as a: premium reductin, which lwers the plicy price charged by yur insurer refundable tax ffset thrugh yur tax return. This may result in yu receiving a tax ffset r a liability, depending n: hw yu claim yur rebate the level f rebate yu have claimed fr yur plicy yur incme fr Medicare levy surcharge purpses. Medical expenses
3 Depending n yur family status and adjusted taxable incme (ATI) yu may be eligible t claim a tax ffset fr the net medical expenses yu have incurred ver the applicable claim threshld. The threshlds are indexed each year. Use the table belw t wrk ut whether yu can claim this tax ffset. Table: Entitlement t net medical expenses tax ffset Family status ATI threshld What can I claim? Single (single at 30 June 2013 and n dependent children) $84,000 r less 20% f net medical expenses ver $2,120 abve $84,000 10% f net medical expenses ver $5,000 Family (with a spuse at 30 June 2013, r dependent children at any time during the year, r bth) * plus $1,500 fr each dependent child after the first. There is n upper limit t the amunt yu can claim. $168,000* r less abve $168,000* 20% f net medical expenses ver $2,120 10% f net medical expenses ver $5,000 Net medical expenses are the medical expenses yu have paid less any refunds yu received, r culd receive, frm Medicare r a private health insurer. The medical expenses must be fr: yu yur spuse, regardless f their incme yur children wh were under 21 years ld, including adpted and stepchildren, regardless f their incme any ther child under 21 years ld wh was nt a student, whm yu maintained, and whse adjusted taxable incme (ATI) fr the perid yu maintained them was less than
4 fr the first child under 21 years ld the ttal f $282 plus $28.92 fr each week yu maintained them, r $1,786 if yu maintained them fr the whle year fr any ther child under 21 years ld the ttal f $282 plus $21.70 fr each week yu maintained them, r $1,410 if yu maintained them fr the whle year a student under 25 years ld whm yu maintained and whse ATI was less than the ttal f $282 plus $28.92 fr each week yu maintained them, r $1,786 if yu maintained them fr the whle year a child-husekeeper, but nly if yu can claim an amunt fr them as part f yur Zne r verseas frces tax ffset r culd have claimed fr them had yur ATI r the cmbined ATI f yu and yur spuse nt exceeded $150,000 an invalid relative, parent r spuse s parent, but nly if yu can claim fr them as part f yur Zne r verseas frces tax ffset r culd have claimed fr them had yur ATI r the cmbined ATI f yu and yur spuse nt exceeded $150,000 a dependant (invalid r carer), but nly if yu can claim a Dependent (invalid and carer) tax ffset fr them r culd have claimed fr them had yur ATI r the cmbined ATI r yu and yur spuse nt exceeded $150,000. Yu and yur dependants must be Australian residents fr tax purpses, but yu can include medical expenses paid while travelling verseas. Senir Australians and pensiners Senir Australians may be eligible fr ne r mre f the fllwing ffsets: Senirs and pensiners tax ffset Frm 1 July 2012, the pensiners tax ffset has merged with the Senir Australians tax ffset t frm the new senirs and pensiners tax ffset (SAPTO).
5 The senirs and pensiners tax ffset can reduce the amunt f tax yu are liable t pay. T be eligible fr this tax ffset yu have t meet certain cnditins relating t yur incme and eligibility fr an Australian gvernment pensin. If yu are a senir, yu must meet the age requirement fr the Age pensin t be eligible fr the ffset. In sme cases yu may nt have t ldge a tax return any mre. Mature age wrker tax ffset The mature age wrker tax ffset aims t encurage and reward mature age wrkers wh stay in the wrkfrce. Fr the and future incme years, yu will be eligible if yu meet all f these cnditins: yu are an Australian resident fr tax purpses yu were brn befre 1 July 1957 yur net incme frm wrking is less than $63,000. The maximum tax ffset is $500. We will calculate yur ffset amunt fr yu based n the infrmatin yu prvide in yur incme tax return and supplement. This ffset is different t the senirs and pensiners tax ffset. Sme peple may be eligible fr bth ffsets. Superannuatin There are tw superannuatin-related tax ffsets. These relate t yur super incme stream and spuse super cntributins. Australian superannuatin incme stream tax ffset If yu receive incme frm an Australian superannuatin incme stream, yu may be entitled t a tax ffset equal t: 15% f the taxed element, r 10% f the untaxed element.
6 The tax ffset amunt available t yu will be shwn n yur PAYG payment summary - superannuatin incme stream, which yu will receive frm the payer. Yu're nt entitled t a tax ffset fr the taxed element f any superannuatin incme stream yu receive befre yu turn 55 years ld unless the superannuatin incme stream is either a: disability superannuatin benefit, r death benefit incme stream. Yu are nt entitled t a tax ffset fr the untaxed element f any superannuatin incme stream yu receive befre yu turn 60 years ld unless: the superannuatin incme stream is a death benefit incme stream; and the deceased died after they turned 60 years ld. Cntact yur payer if yu: did nt receive a payment summary r yu lst yur payment summary think yu qualify fr this tax ffset and the payment summary des nt shw it disagree with the amunt shwn n yur payment summary. Tax ffset fr superannuatin cntributins n behalf f yur spuse If yu make cntributins t a cmplying superannuatin fund r a retirement savings accunt (RSA) n behalf f yur spuse (married r de fact) wh is earning a lw incme r nt wrking, yu may be able t claim a tax ffset. Yu will be entitled t a tax ffset f up t $540 per year if yu meet all f the fllwing cnditins: the sum f yur spuse's assessable incme, ttal reprtable fringe benefits amunts and reprtable emplyer superannuatin cntributins was less than $13,800 the cntributins were nt deductible t yu
7 the cntributins were made t a superannuatin fund that was a cmplying superannuatin fund fr the incme year in which yu made the cntributin bth yu and yur spuse were Australian residents when the cntributins were made when making the cntributins yu and yur spuse were nt living separately and apart n a permanent basis. The tax ffset fr eligible spuse cntributins can't be claimed fr superannuatin cntributins that yu made t yur wn fund, then split t yur spuse. That is called a rllver r transfer, nt a cntributin. Retirement savings accunt (RSA) An RSA is a special accunt ffered by banks, building scieties, credit unins, life insurance cmpanies and prescribed financial institutins. It is used fr retirement savings and is similar t a superannuatin fund. Lw incme earners Yu may be eligible fr a tax ffset if yu are a lw-incme earner - fr example, if yu nly wrk part time. Yu dn't have t claim this ffset - we will wrk it ut fr yu when yu ldge yur tax return. Znes and verseas frces Yu may be eligible fr an verseas frces r remte zne tax ffset, but nt bth. Zne tax ffset T qualify fr the zne tax ffset, yu must have lived r wrked in a remte area (nt necessarily cntinuusly) fr: 183 days r mre during the current incme year; r 183 days r mre in ttal during the current and previus incme years - but less than 183 days in the current year and less than 183 days in the previus incme year - and yu did nt claim a zne tax ffset in yur previus year's tax return.
8 If yu lived in a zne fr less than 183 days in the current incme year, yu may still be able t claim a tax ffset as lng as yu lived in a zne fr a cntinuus perid f less than five years and: yu were unable t claim in the first year because yu lived there less than 183 days; and the ttal f the days yu lived there in the first year and in the current year is 183 r mre. Remte znes Remte areas are classed as either zne A r zne B. There are als special areas within these znes. Overseas frces tax ffset Yu may be eligible fr an verseas frces tax ffset if yu served in a specified verseas lcality as a member f the Australian Defence Frce, Australian Federal Plice r a United Natins armed frce and incme relating t that service was nt specifically exempt frm tax. Perids f service fr which yur incme was exempt freign emplyment incme are excluded in wrking ut yur eligibility fr the tax ffset. Yur emplyer will be able t advise yu whether yu served in a lcality that qualifies fr the verseas frces tax ffset. T claim the full tax ffset, yu must have served in the verseas lcality fr 183 days r mre in the incme year. If yur verseas service was less than 183 days, yu may be able t claim part f the tax ffset. If yu served in an verseas lcality fr less than 183 days but the ttal number f days served in the verseas lcality (when added t the number f days spent in ne r mre znes) is 183 days r mre, yu may still be entitled t claim the full verseas frces tax ffset. If yu served as a member f the Australian Defence Frce, days spent in a zne must be defence frce service. Specified lcalities Yu may be eligible fr an verseas frces tax ffset if: yu served in a specified verseas lcality as a member f the Australian Defence Frce r a United Natins armed frce in the last financial year
9 incme relating t that service was nt specifically exempt frm tax. The fllwing table lists the current specified verseas lcalities. If yu served in any f these lcalities as a member f the Australian Defence Frce r f a United Natins armed frce during the last financial year, yu may qualify fr an verseas frces tax ffset. If yu served in a lcality in an earlier incme year and it was a specified lcality when yu served there, yu may be eligible t claim the verseas frces tax ffset in that incme year. Descriptin f the specified lcality 28 Octber 1992 The Sinai. 11 June 1999 Area cmprising the plitical bundaries and airspace f the Federal Republic f Yugslavia (including the prvince f Ksv), Albania and the frmer Yugslav Republic f Macednia. 21 April 2003 Ttal land area, territrial waters and superjacent airspace within the internatinally recgnised bundaries f Israel, Jrdan, Syria, Lebann and Egypt. 24 July 2003 Ttal land areas, territrial waters and superjacent airspace bundaries f the Slmn Islands. 10 April 2005 Sudan and its territrial waters and superjacent airspace. 28 Octber 2005 Area cmprising the land, sea and air areas bunded by the internatinally recgnised brders f Pakistan. 12 May 2006 Area cmprising East Timr and its territrial waters and superjacent airspace. 20 July 2006 Area cmprising Lebann and its territrial waters and superjacent airspace.
10 26 Octber 2011 The Republic f Suth Sudan and Uganda including superjacent airspace