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Tax help, if you need a housekeeper

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Note: From July 1, 2012, the following offsets are to be consolidated; housekeeper, housekeeper (with child), child-housekeeper, child-housekeeper (with child), the invalid spouse, carer spouse, invalid relative and parent/parent-in-laws. The new consolidated offset will be based on the highest rate of the existing offsets it replaces, resulting in an increased entitlement for many of those eligible for this measure. Taxpayers who are currently eligible to claim more than one offset amount in respect of multiple dependants who are genuinely unable to work will still be able to do so.

Consolidation of the eight dependency tax offsets into a single, streamlined and non-refundable offset is only available to individuals who maintain a dependent and are genuinely unable to work due to carer obligation or disability. The new consolidated offset will result in an increased entitlement for many of those eligible for this measure.

The following information is regarding the housekeeper tax offset for 2011-12.

If you earn less than $150,000 in 'adjusted taxable income', you might be entitled to a housekeeper tax offset if you have no spouse and don't get the family tax benefit part B, or if your spouse receives a disability support payment, or both you and your able spouse don't claim the dependent spouse offset or family tax benefit part B.

The maximum offset you can claim for a housekeeper is $1,919, or $2,299 with a dependent child or student where the adjusted taxable income of that dependent child or student was less than $282 plus $28.92 for each week you maintained them. But the housekeeper needs to be fully engaged in taking care of the household, which is not limited to doing domestic chores but must also entail core decision making for the household.

Duties can include taking care of a child younger than 21, or any dependant with other income of less than $1,863, an invalid relative or spouse getting a disability support payment or rehabilitation allowance.

A housekeeper's 'separate net income' (including wages and investment income) is irrelevant to your eligibility for the tax offset.

Last reviewed 2/08/2012

NOTE: Various rebates and tax offsets apply to reduce an individual's income tax. Click here to access a table that summarises the 2011-12 and 2012-13 tax offsets for senior Australians, pensioners, mature age workers, medical expenses and the tax offsets for low income earners.