Dependant (Invalid and Carer) Tax Offset – Tax Pitfalls

According to the Australian Taxation Office, the “adjusted taxable income” refers to the total of the following amounts:

  • taxable income
  • adjusted fringe benefits
  • tax-free pensions or benefits
  • income from overseas not reported in your tax return
  • reportable super contributions
  • total net investment loss for financial investments and rental properties.

Child support payment made are deducted from the above amounts to calculate the adjusted taxable income

For every $4 that the dependent’s adjusted taxable income surpasses $282, the dependant (invalid and carer) tax offset (DICTO) is decreased by $1.


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