From 1 July 2012, if your client has a dependent spouse born on or after 1 July 1952, they may no longer be entitled to claim the dependent spouse tax offset. The offset is being gradually phased out as the population ages.

On 28 September 2012, we will send letters directly to your affected clients, to make them aware of the change. Where we do not have a residential address for your client, the letter will be sent to you.

If your client is claiming the offset through reduced amounts withheld from their salary and wages, they should increase their withholding rate now in order to avoid a possible debt.

For more information, including exemptions to the age limit, refer to Dependent spouse tax offset phase-out.