Compare documents

Is the taxpayer entitled to a dependant tax offset under section 159J of the Income Tax Assessment Act 1936 (ITAA 1936) for maintaining a full time student sibling?

No, the taxpayer is not entitled to a dependant tax offset under section 159J of the ITAA 1936 for maintaining a full time student sibling?

The taxpayer provided their sibling with food and clothing and covered the cost of other living expenses.

The taxpayer's sibling is a full-time student under the age of 16.

The taxpayer and their sibling reside together.

Section 159J of the ITAA 1936 provides that if a taxpayer contributes to the maintenance of a person who is a resident of Australia during an income year, the taxpayer may be entitled to a tax offset.

The dependant tax offsets available under section 159J of the ITAA 1936 are for a: • Spouse • Child-housekeeper • Invalid relative • Parent of the taxpayer or parent of the taxpayer's spouse

The taxpayer is not maintaining a dependant spouse, invalid relative or parent.

A 'child-housekeeper' is defined in subsection 159J(6) of the ITAA 1936 as being a child of the taxpayer who is wholly engaged in keeping house for the taxpayer. The taxpayer's sibling is not their child and as they are a full-time student cannot be 'wholly engaged' in keeping house for the taxpayer. The taxpayer is therefore not maintaining a dependant child-housekeeper.

The taxpayer is not considered to be maintaining a dependant under section 159J of the ITAA 1936 and is therefore not entitled to a tax offset.