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.
Taxpayers who are currently eligible to receive more than one dependency offset amount in respect of multiple dependants who are genuinely unable to work will be able to receive more than one amount of DICTO in respect of these dependants.
Taxpayers eligible to receive the zone, overseas forces or overseas civilians tax offsets will be able to continue to claim their dependency offset amounts under the current arrangements, and will face no change to their offset entitlements.
Exposure draft legislation and explanatory material which would implement the announced change has been released for public comment.