Dependent Tax Offset Calculator 2024
Calculate Your Refund
See how much you could receive based on your income and children.
How It Works
The Dependent Tax Offset can reduce your tax bill by up to $2,030 per child if your combined income is below $180,000. For incomes above $180,000, the offset is reduced by $1 for every $2 above the threshold.
For every $2 of income above $180,000, your offset decreases by $1.
Enter your details above to see your potential Dependent Tax Offset.
Key Takeaways
- For the 2024 financial year, the Dependent Tax Offset can reduce your tax bill by up to $2,030 per child.
- Family Tax Benefit (FTB) Part A and Part B provide additional cash assistance, but they are separate from tax offsets.
- You must meet residency, age and income‑test criteria to claim any child‑related benefit.
- All claims are made through your annual tax return - there’s no separate ‘child tax refund’ form.
- Common mistakes include forgetting to declare the Child Care Subsidy and mis‑reporting the child’s income.
Dependent Tax Offset is a tax relief for Australian families with dependent children that reduces the amount of tax payable on earned income in the 2024 financial year. If you’re wondering how much you’ll get back in taxes for a child this year, you’ll need to look at three main pieces of the puzzle: the Dependent Tax Offset itself, the Family Tax Benefit (both Part A and Part B), and any other child‑related deductions such as the Child Care Subsidy.
Below we break down every element you need to know, show you how to run the numbers, and give you a step‑by‑step guide to claim the right amount on your 2024 tax return.
1. What Child‑Related Tax Benefits Exist in 2024?
Australia’s tax system gives families several ways to reduce taxable income or receive cash payments. The most relevant for a typical household with a child are:
- Dependent Tax Offset - a direct reduction of tax payable.
- Family Tax Benefit Part A - a fortnightly payment that covers basic living costs.
- Family Tax Benefit Part B - extra help for single parents or families where one parent earns low income.
- Child Care Subsidy - a reduction in out‑of‑pocket child‑care fees, declared on the tax return if you receive a rebate.
- Low Income Tax Offset - may apply if your taxable income falls below the threshold, indirectly benefiting families with children.
Each of these has its own eligibility rules, but the Dependent Tax Offset is the only one that directly tax refund for a child‑related amount you can see on your notice of assessment.
2. How the Dependent Tax Offset Works in 2024
The ATO (Australian Taxation Office) updated the offset limits for the 2024‑25 fiscal year. The key figures are:
| Child Age | Maximum Offset (per child) | Income Test Threshold (combined family income) |
|---|---|---|
| Under 16 | $2,030 | $180,000 |
| 16-18 (full‑time students) | $2,030 | $180,000 |
| 19-24 (full‑time tertiary students) | $2,030 | $180,000 |
To claim the full $2,030, your combined family income must be below $180,000. If you earn more, the offset is reduced by $1 for every $2 of income above the threshold.
3. Calculating Your Potential Refund
Let’s walk through a practical example. Suppose you are a married couple living in Sydney, both earning salaries:
- Partner A: $95,000
- Partner B: $70,000
Your combined taxable income is $165,000, which is below the $180,000 cut‑off. With two children under 16, the maximum offset you can claim is 2 × $2,030 = $4,060.
Now factor in the Low Income Tax Offset (LITO). For incomes between $37,001 and $45,000, LITO provides a $445 offset; it tapers off after $66,667. In this scenario, both partners earn above the LITO range, so no extra LITO applies.
If you also receive Family Tax Benefit Part A - say $800 per fortnight for the two children - that cash payment does not affect your tax offset, but it improves overall cash flow.
To visualize the net effect, here’s a quick summary table:
| Component | Amount |
|---|---|
| Combined Taxable Income | $165,000 |
| Dependent Tax Offset (2 children) | -$4,060 |
| Family Tax Benefit Part A (annual) | +$20,800 |
| Estimated Tax Payable (before offsets) | $45,000 |
| Tax Payable After Offset | $40,940 |
| Net Cash Benefit (FTB + tax reduction) | +$24,860 |
In plain English, the Dependent Tax Offset saves you $4,060 on your tax bill, while the cash benefits from FTB add another $20,800. Together, the family walks away with almost $25,000 extra cash for the year.
4. Step‑by‑Step: Claiming the Dependent Tax Offset on Your 2024 Tax Return
Even though the offset is automatically calculated by the ATO when you lodge, you still need to provide the right details. Follow these steps:
- Gather proof of each child’s date of birth and Australian residency status. Your Medicare Card numbers work fine.
- Log in to myGov and link to the ATO portal.
- Navigate to the “Tax return” section and choose “Start new return” for the 2024 financial year.
- When you reach the “Family” page, tick the box that says “I have dependent children”.
- Enter each child’s details exactly as they appear on your Medicare or birth certificate. The system will ask for:
- Full name
- Date of birth
- Relationship (e.g., son, daughter)
- Whether they received any other government benefits (FTB, Child Care Subsidy).
- If you received the Child Care Subsidy, add the amount in the “Other Deductions” section. The ATO will cross‑check it against the Department of Human Services.
- Review the pre‑filled income figures, ensure any salary packaging or superannuation contributions are correct.
- Submit the return. The ATO usually processes online lodgments within 24‑48 hours and issues a notice of assessment.
- If the assessment shows a tax refund, it will include the Dependent Tax Offset automatically. You can elect to have the refund deposited into any nominated bank account.
That’s it - no separate form, no extra paperwork. Just make sure the child data matches your records, and the ATO does the math.
5. Common Mistakes and How to Avoid Them
Even seasoned filers slip up. Here are the top five errors and quick fixes:
- Forgot to declare a child’s overseas residency. The offset only applies to Australian‑resident children. If a child lived overseas for more than six months in the year, you must mark them as “non‑resident” to avoid a refund clawback.
- Entered the wrong date of birth. A one‑day error can trigger a mismatch with the ATO’s records, causing a delay. Double‑check the birth certificate before you type.
- Claimed the offset for a child who already receives the full FTB. The offset and FTB are separate, but you cannot claim the offset if your combined family income exceeds $180,000 and the child is already accounted for in the means‑tested FTB calculation.
- Missed the Child Care Subsidy reconciliation. If you receive a subsidy, you must lodge the ‘Child Care Declared Income’ field; otherwise, the ATO may issue a penalty.
- Used the previous year’s tax software. Tax software updates each year to reflect the latest thresholds. Using 2023 software can lock you into outdated $2,000 offset limits.
6. Frequently Asked Questions
Can I claim the Dependent Tax Offset for a child over 24?
No. The offset applies only to children who are under 16, full‑time students aged 16‑18, or full‑time tertiary students aged 19‑24. Once a child turns 25, the offset ends.
Do I need to lodge a separate claim for Family Tax Benefit?
Family Tax Benefit is paid fortnightly by Centrelink, not through your tax return. You apply directly via the myGov portal linked to Centrelink. The tax return only needs to note that you receive FTB when checking eligibility for other offsets.
What if my partner and I both claim the same child?
Only one parent can claim the Dependent Tax Offset for a given child. The ATO’s system will accept the first claim it receives. If both spouses submit, the ATO will allocate the offset to the parent with the higher taxable income, unless you explicitly nominate otherwise in the “Family” section.
How long does it take to receive the refund?
For online lodgments, the ATO usually processes the return within 24‑48 hours. If you’re due a refund, it will appear in your nominated bank account within 5‑7 business days after the assessment is issued.
Will a higher income completely eliminate the offset?
The offset phases out gradually. For every $2 of combined family income above $180,000, the $2,030 per child is reduced by $1. So even at $200,000 combined income, you still get about $1,525 per child.
7. Next Steps & Troubleshooting
Now that you know the numbers, here’s what to do next:
- Check your combined income. Use your latest payslips or your accountant’s estimate to see if you’re under the $180k threshold.
- Gather child documents. Medicare cards, birth certificates, and any Centrelink correspondence should be on hand before you log into myGov.
- Update your tax software. Most major platforms (MYOB, Xero, QuickBooks) release a “2024‑25 tax update” package in September. Install it before you start the return.
- If the ATO asks for proof. They may request a copy of the child’s birth certificate or a recent Centrelink statement. Having digital PDFs ready speeds up the process.
- Need help? A qualified tax agent can lodge on your behalf for a modest fee, and they’ll ensure the Dependent Tax Offset is applied correctly.
Following these steps will put you in the best position to claim every dollar you’re entitled to for your child in 2024.
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