The Government announced in the 2012-13 Budget that it will consolidate eight of the existing dependency tax offsets into a single, streamlined offset with respect to the 2012-13 and future income years.
From 2012-13 onward, the new Dependant (Invalid and Carer) Tax Offset (DICTO) will only be available to taxpayers who maintain a dependant who is genuinely unable to work due to invalidity or care obligations.
The offsets to be consolidated are the invalid spouse, carer spouse, housekeeper, housekeeper (with child), child-housekeeper, child-housekeeper (with child), invalid relative and parent/parent-in-law tax offsets.
Treasury has now released for public comment Exposure draft legislation and explanatory material which would implement the announced change.
The closing date for submissions is Tuesday 5 March 2013.