Tax offsets (sometimes also referred to as rebates) directly reduce the amount of tax you must pay. Unlike deductions, your tax already owing is reduced by the total amount of your tax offset, instead of reducing your taxable income.
Tax offsets can only reduce the amount of tax you pay to zero, that is, if your tax offsets are greater than your tax due, you do not get a refund of the excess amount. However, there are exemptions.
Below are the main tax offsets that you might be eligible for:
Spouse (without dependent child or student), child-housekeeper or housekeeper.
You may be eligible for this rebate if you have had a dependent spouse, child-housekeeper or housekeeper for any part of the year.
Senior Australians (includes age pensioners, service pensioners and self‑funded retirees)
This offset can only be claimed if you meet the conditions relating to age, income and are eligible for Australian Government pensions.
If you have not claimed the senior Australians rebate but have an Australian Government pension or allowance you’re likely to be entitled to this offset.
Australian superannuation income stream
Your tax offset amount will be shown on your PAYG payment summary – superannuation income stream and you must meet certain other requirements to qualify.
Private health insurance
Did you, or your employer on your behalf, pay a premium for a complying private health insurance policy? If so, you may eligible for this tax offset.
Education tax refund
This is a new rebate being offered by the ATO. To be entitled either you or your partner must have incurred eligible education expenses in the last financial year for the primary or secondary school studies of a child or yourself (if you’re an independent student under 25.)
If you have a child or legally gained a child under 5 years of age and meet other requirements you may be suitable to receive this rebate.
There are other tax offsets relating to issues such as the geographic zone you live in, if you’ve served overseas for the Australian Defence Force, and many more. For any queries regarding tax offsets, eligibility and tax returns please do not hesitate to contact our experienced team of accountants. Click here to submit an online enquiry or call us on 1300 QUINNS (1300 784 667) or on +61 2 9223 9166 to book an appointment.