Tax Benefits And Offsets For People With A Disability

Individuals with disabilities or those caring for someone with a disability may be eligible for tax-free government pensions or benefits. These pensions or benefits are exempt from income tax, providing financial relief to those in need.

However, it's important to note that if you're required to lodge a tax return, you must still include these pensions or benefits in your filing. They are factored into calculating your adjusted taxable income (ATI), which is used to determine your eligibility for specific tax offsets and the amount of those offsets.

Being mindful of these considerations ensures that individuals receive the full benefit of available support while remaining compliant with tax regulations.

Tax Concessions on Vehicles for Individuals with Disabilities

Individuals with disabilities may qualify for a goods and services tax (GST) concession when purchasing or leasing a car or buying car parts. Eligibility criteria, which typically apply to working individuals or veterans with disabilities, must be met to claim this concession.

Veterans with disabilities may qualify under specific categories. The GST car concession covers brand-new and pre-owned vehicles, categorised under GST regulations as motor vehicles capable of carrying loads under one tonne or accommodating fewer than nine passengers.

Additionally, eligibility for a concession extends to purchasing certain car parts, providing further financial relief for individuals with disabilities seeking mobility solutions.

Eligibility Criteria For A GST Concession

Individuals who are either working persons with disabilities or veterans with disabilities may qualify for a GST car concession. This concession offers financial assistance to those in need, providing relief when purchasing or leasing a car or buying specific parts.

1.     Working Individuals with Disabilities

You're eligible for a GST car concession if you have a certificate showing you can't use public transport due to limb loss. The certificate can be permanent from Medibank Health Solutions (MHS) or current from a doctor. With a permanent certificate, you can buy cars or parts GST-free anytime. If it's lost, you need a new one. Temporary certificates need renewal before each GST-free purchase.

2.     Veterans With Disabilities

If you're a veteran with a disability from serving in the Australian Defence Force or another Commonwealth armed force, you can qualify for a GST car concession. You're eligible if you've lost a leg or both arms, have total and permanent loss of use in a leg or both arms, receive a TPI pension, or are assessed by the Department of Veterans Affairs (DVA) for a special rate disability pension. You can use your Veteran Gold Card with 'TPI' embossed or obtain a confirmation letter from the DVA to prove your eligibility.

Services Provided To People With Disability

The services are inclusive and accessible to everyone in the community as relevant legislation requires. This includes providing information and tools in accessible formats, offering video guides with downloadable transcripts, some available in languages other than English, and creating simplified guides on commonly encountered topics for individuals with lower literacy or reading difficulties.

Additionally, for those who are deaf or have difficulty communicating via phone, the National Relay Service (NRS) is available to assist.

Products to Assist in Completing Your Tax Return

To fulfil your tax obligations, you have two primary methods for lodging your returns: online submission through myTax or the traditional paper-based approach.

Online Submission

Online lodging via myTax offers convenience and accessibility. It accommodates users with various devices, including tablets, smartphones, and computers. It's designed to be compatible with screen-reader software, ensuring accessibility for individuals with visual impairments.

However, it's essential to note that utilising myTax requires a myGov account linked to the Australian Taxation Office (ATO).

Traditional Paper Forms

Alternatively, if you prefer the tangible nature of paper forms, you can lodge your tax return manually. The Individual Tax Return Instructions are available in accessible formats to cater to diverse needs:

1. TaxDAISY is an audio disk with instructions for supplementary questions and individual tax return instructions. You can listen to it on portable digital players or computers equipped with DAISY software for accessibility.
2. TaxCD: Receive audio summaries of individual tax return instructions conveniently on CD format.
3. TaxDisk: Individual tax return instructions are available on CD and formatted explicitly for computers with screen readers and speech-synthesiser software.

These accessible formats aim to ensure that all taxpayers, regardless of their preferred method or accessibility requirements, can fulfil their tax obligations accurately and efficiently.

Determine Your Eligibility for Tax Offsets or Rebates

Assessing eligibility for tax offsets or rebates can significantly impact your tax liability or that of your caregiver. These offsets, also known as rebates, directly lower the tax you owe on your taxable income. While they can often bring your tax bill down to zero, they typically don't generate refunds independently.

Determining eligibility for these offsets involves considering various factors.

●       Firstly, being classified as a senior Australian or a pensioner could render you eligible for certain offsets.

●       Additionally, receiving specific government allowances or payments may qualify you for tax relief.

●       Finally, being categorised as a low or middle-income earner could also make you eligible for tax relief measures.

It's important to understand that the eligibility criteria for these offsets can vary based on individual circumstances and government policies. Therefore, reviewing your situation carefully or consulting with a tax professional to ascertain which offsets or rebates you qualify for is advisable. Utilising accessible tax relief measures can effectively lighten your tax load and enhance your financial standing.

Get in touch with our online accountants for small businesses to learn more about Tax Benefits And Offsets.