Did you know? The way you define a ‘qualifying relative’ could mean thousands of dollars in tax offsets and government support. With 2025 tax reforms and Centrelink updates rolling out, understanding who counts as a qualifying relative in Australia has never been more important.
What is a Qualifying Relative in Australia?
Unlike the US, where the phrase ‘qualifying relative’ is a formal tax term, in Australia it’s a practical concept used to determine eligibility for various tax offsets, government benefits, and social support. The definition hinges on the specific purpose—whether you’re claiming a dependent tax offset, applying for Centrelink, or seeking family support payments.
- Tax Offsets: The ATO uses ‘dependent’ and ‘qualifying relative’ for offsets like the Invalid and Invalid Carer Tax Offset, Zone Tax Offset, and the Parent/Spouse Tax Offset.
- Centrelink: Services Australia assesses ‘relatives’ for payment eligibility, including the Family Tax Benefit and Carer Allowance.
- Family Law: The concept can affect child support and parental obligations.
In 2025, updates to the Family Tax Benefit (FTB) income tests and the ATO’s dependent offset rules have made it essential to check your eligibility against the latest criteria.
2025 Policy Updates: Why Definitions Matter
This year, the government adjusted several thresholds and eligibility rules, which directly impact who qualifies as your relative for tax or Centrelink purposes:
- Income Thresholds: The ATO’s dependent offset now uses a higher adjusted taxable income (ATI) cap—$12,800 for most dependents. Centrelink has also increased the income cut-offs for FTB Part A and B.
- Residency: To be a qualifying relative, the person usually needs to be an Australian resident for tax purposes. Some temporary visa holders are excluded.
- Relationship: For tax offsets, a qualifying relative can include a spouse, parent, child, sibling, or even a housemate if you provide significant financial support.
For example, if you care for an elderly parent living with you and their ATI is under $12,800, you may be able to claim the dependent (invalid and carer) tax offset. If your child turns 18 in 2025 but is still studying full-time, they may remain a qualifying relative for some benefits.
Real-World Scenarios: Who Counts as a Qualifying Relative?
- Case 1: The Young Adult Student
Maria supports her 19-year-old son while he’s at university. Because he’s under 21, studying full-time, and earns less than $12,800, he remains a qualifying relative for Maria’s tax offset and her FTB claim. - Case 2: The Elderly Parent
John cares for his 75-year-old mother who receives the Age Pension. Her income is low, and she lives with John. He can claim the carer tax offset as she is his qualifying relative, provided all other requirements are met. - Case 3: The Blended Family
Sophie’s partner has two children from a previous marriage who live with them half the year. Both children can be qualifying relatives for FTB and Medicare levy reduction purposes, depending on custody arrangements and support provided.
Always check the specific criteria for the payment or offset you’re claiming, as definitions vary between the ATO, Centrelink, and family law.
How to Prove a Relative Qualifies
To claim benefits, you may need to show:
- Proof of relationship (birth certificate, marriage certificate, etc.)
- Evidence of financial support (bank statements, rental agreements)
- Residency status documentation
- Income details of the relative
In 2025, electronic record-keeping and myGov integration make submitting this documentation easier, but accuracy is vital—ATO and Centrelink can request evidence at any time.
Maximise Your Tax and Benefits in 2025
With cost-of-living pressures and rising household expenses, every tax offset and government benefit counts. Understanding the nuances of ‘qualifying relative’—and staying current with 2025 policy changes—can mean more money in your pocket and less stress at tax time.
