Tax offsets and rebates directly reduce the amount of tax payable on your taxable income and there are certain criteria that must be met before receiving a tax offset. Also, note the latter will not reduce your Medicare Levy and Medicare Levy Surcharge.

Among the many types of offset and rebates, below are the most uncommon ones that an individual might know less about.

Maintaining an invalid or invalid carer:

You may be able to claim a tax offset if you maintain certain invalids or invalid carers. The invalid or invalid carer must be both 16 years old or older and is receiving certain government payments.

Tax offset can be claimed for maintaining an invalid if he or she is your:

• spouse
• child or sibling who is 16 years and above
• spouse's child or sibling who is 16 years and above
• parent
• spouse's parent and if the invalid receives either:
• a disability support pension under the Social Security Act 1991
• a special needs disability support pension under the Social Security Act 1991
• an invalidity service pension under the Veterans’ Entitlement Act 1986.

Tax offset can’t be claimed if:

1. You maintain an invalid spouse or an invalid carer but your adjusted taxable income is more than $100,900.
2. You maintain an invalid or invalid carer who is not your spouse, but both you and your spouse have an adjusted taxable income of more than $100,900.

Zones and overseas forces tax offsets:

This type of tax offset is available to individuals who are residents of either:

• Specified remote areas (Zone A or Zone B) and
• Isolated areas of Australia.

To claim the zone tax offset your usual place of residence needs to be both:

• a remote or isolated area and
• your residence for 183 days or more during the income year.

If your residence is less than 183 days, you may still be able to claim the tax offset following some criteria.

Overseas forces tax offset eligibility may apply with the following:

• you serve in a specified overseas locality
• your income relating to that service is not specifically exempt from tax
• you are a member of either    
• the Australian Defense Force
• a United Nations armed force.

You must have served in an overseas locality for 183 days or more in the income year to claim the full tax offset, if it was less than 183 days, you may still be able to claim part of the offset.

Need assistance in claiming your tax offsets and rebates? Talk to us now.

Yan (Jenny) Qi CA

Founder of Progress CA Pty Ltd

Tel. no. 0403 050 779

Email: info@progressca.com.au

Website: www.progressca.com.au