TAX time has revealed a nasty surprise for some seniors surprised by the loss of the Dependent Spouse Tax Offset this year.
The offset, which has been gradually phased out since 2011, was abolished this year in a move which applies to the 2014-15 income year and beyond.
In recent years it has only applied to older people, and since 2012 has applied only to spouses born before 1952, who would be 63 or older this year.
Maximum value of the offset was $2471 for people who were working and whose spouse earned less than $282 in the year.
The amount was gradually reduced based on the dependent spouse's income, with the maximum income before losing the offset $10,166 in 2013-14.
The Senior reader Diane Kennedy, 65, from Victoria, said losing the offset had been a blow for her.
Her husband, who is still working at 67, brings home just over $800 each week and she has been unable to work for the past six years due to poor health.
She said in the past they had relied on the rebate they received as a result of the offset to pay rates and other major expenses for the year.
"It's $160 to get out tax done and his return is now $600 less the $160, back from just over $3000 in other years.
"It's been a very sneaky change."
A spokeswoman for National Seniors said while the organisation had received calls about the issue in the past, the change had been coming for some time.
Under the new laws, taxpayers who have a dependent spouse who is genuinely unable to work due to invalidity or carer responsibilities can still claim a tax offset of up to $2471 if they contribute to the maintenance of their spouse and meet income criteria.
The abolition of the offset was expected to save $130 million in 2015-16.
