The ATO advises that new legislation changing entitlements to the dependent (invalid and carer) tax offset came into effect from 1 July 2012.
The ATO says that unless a tax agent's clients are eligible for a zone or overseas tax offset, they are no longer able to claim offsets for a:
- spouse born on or after 1 July 1952
- invalid relative.
Clients can only claim a tax offset for dependents in receipt of an invalidity pension or carer of such a person.
The ATO expects that very few taxpayers would be eligible to receive the new tax offset; however 32,512 taxpayers have made claims. As a result, it is stopping all returns with a dependent tax offset claim greater than $0 to review. The ATO will follow-up on any notices of assessment that have already issued.