You need to meet four conditions to be eligible for the senior Australians tax offset (SATO). These conditions relate to factors such as age, income, and eligibility for Australian Government pensions and similar payments.
Generally, it is available to a taxpayer who:
- Was at or above age pension age at 30 June 2009:
- Receives the Commonwealth age pension or a Department of Veteran Affairs payment during the income year (or would have received it if a claim were made or the asset test was satisfied).
- Was not in prison at any time during the year.
- Has taxable income under the cut-out threshold (see table below).
The following shade-outs and cut-offs apply for the 2008-09 financial year.
| Family Situation | Maximum Offset $ |
Shade-out Threshold $ |
Cut-out Threshold $ |
|
Single, separated or widowed
|
2,230 | 28,867 | 46,707 |
|
Each member of a couple
(married or de facto) |
1,602 | 24,680 | 37,496 |
|
Each member of a couple
(separated due to illness or because one was in a nursing home) |
2,040 | 27,600 | 43,920 |
The ATO have a Senior Australians Tax Offset Calculator available online. The calculator will help you work out whether you are eligible for SATO, calculates the amount of your offset and takes into account a transfer of your spouse’s unused senior Australians or pensioner tax offset.
More detailed information is available from the Tax Office web site on each of the four conditions you must meet to be eligible for the senior Australians tax offset.
Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
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