Business Succession PlanningDolfinwise Super Strategies

Where a housekeeper is wholly engaged in keeping house for a taxpayer in Australia and in caring for:

	a child (including an adopted child, step-child or ex-nuptial child) of the taxpayer less than age 21, irrespective of the child's separate net income (SNI);
	any other child under age 21 (whether or not the taxpayer's) who is a dependant of the taxpayer and whose separate net income is less than $1,786;
	an invalid relative who is a dependant of the taxpayer and for whom the taxpayer is entitled to claim a dependent tax offset, or
	a spouse in receipt of a disability support pension or equivalent rehabilitation allowance.

Then they may be eligible for the housekeeper tax offset.

The maximum housekeeper tax offset for the 2008/09 financial year was $2,108 if the taxpayer had a dependent child or student and $1,759 if the taxpayer did not have a dependent child or student.

The higher tax offset is dependent on the child or student’s income. Eligibility for family tax benefit part B may mean that a taxpayer entitled to a notional offset for a dependent child or student will not be able to claim the housekeeper tax offset.

The requirement is that the taxpayer must be wholly engaged in keeping house, which means that part-time help will not qualify. Housekeepers must have the responsibility of decision-making for the household and a mere carrying out of domestic duties is not enough.

The housekeeper tax offset is not reduced if the housekeeper derives separate net income.

A taxpayer generally cannot claim a housekeeper tax offset if they or their spouse are eligible for family tax benefit part B.