Many Sydney residents are unaware of tax offsets and their eligibility to use them. Understanding tax offsets can help when doing the tax return Sydney residents all dread.
What is a Tax Offset?
A tax offset is designed to offer Australians benefits for participating in such things as private health insurance that helps offset public health fees. They are also designed to assist those in varying circumstances such as those with dependants in order to allow for fair treatment of taxing based on their personal circumstances.
Am I Eligible for a Tax Offset?
Many people are eligible for tax offsets and do not even know it. There are many options for tax offsets under many different categories. Those categories include:
- Taxpayers with dependants
- Pensioners and Senior Australians
- Health Insurance
- Low Income Earners
- Benefit Recipients
- Medical Expenses
- Zones and Overseas Forces
Taxpayers with Dependants
Taxpayers with dependants can apply to many Australians and can fall under these sub-categories:
- If you maintained a dependant spouse or relative
- If you hired a full time housekeeper to assist in the care of children or an invalid relative
- If you have a Child housekeeper who cares for your home full time
Pensioners and Seniors
Pensioners and Senior Australians fall under many conditions including age, income and eligibility for an Australian government pension. Under this category there is also the mature age worker tax offset, which is offered to those who stay in the workforce beyond retirement age. You can qualify for this offset based on the following criteria:
- Over the age of 55
- Income of under $63,000
- An Australian resident for tax purposes
Superannuation and Other Offsets
If you are receiving a superannuation stream, use private medical benefits, are a low-income worker or are receiving benefits you may also be eligible for offsets. Understanding how tax offsets work can be very complicated. The tax return Sydney residents lodge may benefit from a tax accountant who will know if tax offsets apply to you.