Tax offsets

These are not deductions from assessable income, but actual reductions of tax. They used to be called rebates. Some of then have quite complex conditions, which are set out in TaxPack.

The major offsets are:

spouse, child-housekeeper or housekeeper (there is limit of $1489 on the offset, but no taxpayer income limit)
senior Australian tax offset (the maximum offset is $2330; the income limit varies)
30% private health insurance (there is no limit on either offset or income)
the ‘baby bonus’
medical expenses in excess of $1500 (20% of the excess is refundable)
superannuation contributions on behalf of a spouse
the zone allowance for those living in remote areas

Franking credits

Franking credits accompanying dividends also act as tax offsets. If the credits are more than required to offset all other tax payable, they give rise to a cash refund.