Announcements
We’re in read-only mode while we do some scheduled maintenance to bring you a bigger, better and brighter online community.
You can still search the site to find answers or take a look at our current top 10 questions.

ATO Community

Seniors and Pensioners Tax Offset

Newbie

Views 344

Replies 1

Dear ATO community,

 

My 75-year-old mother is a permanent resident and lives in Australia continuously for over 10 years.  She is not entitled to pension because she exceeds the assets limit.  Her annual income is around $20,000.

 

I would like to know whether she can claim the senior tax offset.  I have read the relevant section from ATO website as shown below but still can't determine whether she can claim the off-set.  She is not eligible to pesnion because of the assets test.  Does it mean she can claim senior tax offsets?  I have asked an accountant and he said his interpretation of the ATO section below is "yes, she can". However, two other lawyer friends said their interpretation of the ATO section below is "No, she can't".

 

The relevant ATO section I look at is shown below:

 

Eligibility for the seniors and pensioners tax offset

To be eligible for the seniors and pensioners tax offset (SAPTO), you must meet certain conditions relating to:

You can use the Beneficiary tax offset and seniors and pensioners tax offset calculator to help you determine your eligibility for this offset and calculate the amount of offset you can claim.

Eligibility for an Australian Government pension or allowance

You meet this condition if any of the following applied to you in 2019–20:

...........

you satisfied the Centrelink age pension age requirement and were eligible for an Australian Government age pension during the income year, but didn't receive it because you didn't make a claim or because of the application of the income test or assets test and you satisfy one of the following

  • you have been an Australian resident for age-pension purposes for either 10 continuous years or for more than 10 years of which five years were continuous"
1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 0

Hi @Clara24601,

 

Lawyers and tax agents are cut from different cloths!

 

She will meet the eligibility for the seniors and pensioners tax offset.

 

Let's break it down:

 

  • "You satisfied the Centrelink age pension age requirement" Yep!
  • and "were eligible for an Australian Government age pension during the income year, but didn't receive it because... of the application of the... assets test" Yup!
  • and "you satisfy one of the following:...you have been an Australian resident for age-pension purposes for either 10 continuous years or for more than 10 years of which five years were continuous" Yup!

 

She sure meets the requirements as far as we are concerned!

 

https://www.ato.gov.au/Individuals/Income-and-deductions/Offsets-and-rebates/Seniors-and-pensioners-...

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hi @Clara24601,

 

Lawyers and tax agents are cut from different cloths!

 

She will meet the eligibility for the seniors and pensioners tax offset.

 

Let's break it down:

 

  • "You satisfied the Centrelink age pension age requirement" Yep!
  • and "were eligible for an Australian Government age pension during the income year, but didn't receive it because... of the application of the... assets test" Yup!
  • and "you satisfy one of the following:...you have been an Australian resident for age-pension purposes for either 10 continuous years or for more than 10 years of which five years were continuous" Yup!

 

She sure meets the requirements as far as we are concerned!

 

https://www.ato.gov.au/Individuals/Income-and-deductions/Offsets-and-rebates/Seniors-and-pensioners-...