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Family allowances

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Having a family can be an expensive lifestyle – and making ends meet can become a challenge for families with bills to pay, children's education to fund and extended family members to look after. There are special rebates available for families who need that extra helping hand – from the family tax benefit Part A – paid per child based on family income for the financial year; and Part B – which gives extra assistance to sole parents and families with one main income source.

There are also offsets available for taxpayers who find themselves looking after invalid relatives or parents; as well as offsets for taxpayers with a dependent spouse.

Additionally, taxpayers who receive one (or more) of a number of allowances, benefits or social security payments (generally they are taxable benefits) can reduce their tax through the beneficiary tax offset.

Find out more about family allowances by navigating through the links above, or in the menu on the left.

Here are the dependant tax offset limits:

Dependant tax offsets

2010-11

2011-12

Maximum tax offset assumes dependant status for full income year

Basic full-year tax offset

Tax offset cuts out at ATI*

Basic full-year tax offset

Tax offset cuts out at ATI*

Spouse

$2,286

$9,426

 $2,355
 $9,702

Housekeeper1, where taxpayer is entitled for notional tax offset

$2,232

N/A

 $2,299
 N/A

Housekeeper1, where taxpayer is not entitled for notional tax offset

$1,863

N/A

 $1,919
 N/A

Child-housekeeper1, where taxpayer is entitled for notional tax offset

$2,232

$9,210

 $2,299
 $9,478

Child-housekeeper1, where taxpayer not entitled for notional tax offset

$1,863

$7,734

 $1,919

 

$7,958

 

Invalid relative

$839

$3,638

$864

$3,738

Parent of taxpayer or
of spouse

$1,676

$6,986

$1,726

$7,186

*Adjusted taxable income

1: Housekeeper and child-housekeeper must be wholly engaged in keeping house.

Note: Eight dependency tax offsets will be consolidated into one
As part of the 2012-13 Budget, the government announced that it will consolidate the eight dependency tax offsets into a single, streamlined and non-refundable tax offset. The tax offsets to be consolidated are:
1. Invalid spouse tax offset
2. Carer spouse tax offset
3. Housekeeper tax offset
4. Housekeeper (with child) tax offset
5. Child-housekeeper tax offset
6. Child-housekeeper (with child) tax offset
7. Invalid relative tax offset
8. Parent/parent-in-law tax offsets.

The new consolidated tax offset will only be available to taxpayers who maintain a dependant who is genuinely unable to work due to carer obligation or disability from 1 July 2012, and will be based on the highest rate of the existing tax offsets it replaces.

Taxpayers who are currently eligible to claim more than one tax offset amount in respect of multiple dependants who are genuinely unable to work will still be able to do so.

Last reviewed 30/07/2012