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22
May
  • Posted By : Administrative
  • Category: Income
  • Comments: 0

WHY DO I NEED TO INCLUDE MY SPOUSE TAX RETURN DETAILS IN MY TAX RETURN?

Individual taxpayers who have spouses will get some tax benefits as per ATO. To get these benefits an individual taxpayer needs to disclose the income information of their partner. According to ATO a spouse is someone of any gender with whom an individual was in a relationship during the year and that relationship was registered under a prescribed state or territory law; or a person with whom the individual is not legally married but lived with on a genuine domestic basis in a relationship as a couple.
If you have a spouse you might be eligible to claim a reduction in Medicare or certain family tax benefits based on income. Whenever your taxable income is greater than your lowest individual threshold amount but you had a spouse last financial year, you might be eligible for a Medicare levy reduction based on family taxable income limit, that’s why for your benefit you need to provide your spouse’s tax return details to ATO. You can also get benefits regarding Medicare levy surcharge if you include your partners’ tax return details, as the Medicare levy surcharge is income tested against the income tier thresholds where the families’ threshold is wider than the individual amount for 0% rate. If you had a spouse or any dependent children you can apply the family surcharge threshold of $180,000, plus $1,500 for each dependent child after the first, to your income for Medicare levy surcharge purposes.
As part of the 2014-15 Federal budget the Government abolished the Dependent Spouse Tax Offset from 1 July 2014 for all taxpayers but an individual also may be entitled to a tax offset in tax return if they maintained a spouse who is invalid or cared for an invalid.
As an individual if you contributed to a complying superannuation fund or a retirement savings account on behalf of your spouse with a zero or low income you may claim a tax offset. You will be entitled to a tax offset of up to $540 per year if you meet all of the following conditions:

The tax offset for eligible spouse contributions can't be claimed for super contributions that you made to your own fund, and then split to your spouse. That is called a rollover or transfer, not a contribution

  • The sum of your spouse's assessable income, total reportable fringe benefits amounts and reportable employer super contributions was less than $13,800;

  • The contributions were not deductible to you;

  • The contributions were made to a super fund that was a complying super fund for the income year in which you made the contribution;

  • Both you and your spouse were Australian residents when the contributions were made;

  • When making the contributions you and your spouse were not living separately and apart on a permanent basis.

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