Item T1 - Seniors and Pensioners (includes self-funded retirees)

See Item T1 on the ATO website for further information.

Australians entitled to the Senior Australians and pensioners tax offset (SAPTO) include:

- self-funded retirees
- some non-age pensioners and
- armed services pensioners receiving a the Veterans Affairs pension.

Senior Australian and Pensioner Worksheet (SAPTO). To open the mandatory worksheet, at label N or Y press Enter.

This Senior Australians offset is subject to a Rebate income test.

You cannot claim this tax offset if you were in jail for the whole of current income year.

Spouse Details

The definition of spouse now covers same sex relationships.

Your 'spouse' includes another person (whether of the same sex or opposite sex) who:

you were in a relationship with that was registered under a prescribed state or territory law,
although not legally married to you, lived with you on a genuine domestic basis in a relationship as a couple.

If one of codes B, C, D or E is used, all Spouse details must be completed at Spouse details.

Transfer of any unused portion of tax offset

If both you and your spouse are eligible for the seniors and pensioners tax offset and one of you does not use it all, the unused portion may be available for transfer to the other person. We'lll work this out automatically and transfer any entitlement.

In working out if there is any unused spouse's SAPTO available to transfer to you, your spouse's other credits and tax offsets aren't taken into account.

Rebate income thresholds

MYOB Tax will calculate Rebate income for SAPTO purposes using the latest published rates for the current year.

If you had a spouse, the Rebate income test will use the combined income you and your spouse.

The combined rebate income is the total of:

your rebate income
your spouse’s rebate income, and
the amount on which a trustee of a trust was liable to pay tax in respect of your spouse because your spouse was under a legal disability, such as being an undischarged bankrupt or a person who was declared legally incapable because of a mental condition.

To use the shortcut to the Spouse Details Item SD, click the Spouse Details tab, or press F2 and type SD and Enter.

CCH References

15-310 Senior Australians and pensioners tax offset