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Taxation Law - Week 6

According to the rules of the Australian Taxation Office regarding availing of an invalid and invalid carer tax offset, an individual is not entitled to claim this offset if

• The adjusted taxable income of the person for the year 2018-19 is over $100000
• The adjusted taxable income of the invalid or the carer of the invalid is $11150 and above.

In view of these conditions placed by the ATO, for claiming invalid or invalid carer tax offset, the Invalid tax offset available in the 3 scenarios has been worked out below.

Scenario 1

John would not be entitled to claim any amount for an invalid tax offset as his ATI is more than $100000.

Scenario 2

As the adjusted taxable income of John is below $100000 and the adjusted taxable income of Paul is below $11150, John will be eligible to claim an invalid tax offset for the year 2018-2019.

The amount of invalid tax o....