Tax Return:: Do I Have to Include My Partner's Details on My Tax Return?

Hello, this is your tax and super specialist, P&C Tax Professionals.

When it comes to tax time, there is one particular question which can throw many people into confusion and that is: “Did you have a spouse during the given financial year?”

A great starting point may be to take a look at how the ATO defines the term ‘spouse’ and the reason behind why it is necessary to include our spouse details on our own tax return.

<ATO’s definition of ‘spouse’>

When we refer to your spouse, the ATO states that this includes another individual (of any gender) who:

> you were in a relationship with that was registered under a prescribed state or territory law OR

> although not legally married to you, lived with you on a genuine domestic basis in a relationship as a couple.

This basically means that in tax terms, your spouse not only refers to your husband or wife but also a partner which you live with under the same roof. Whether you share your finances with each other or not, if you are in a relationship, you must include your partner’s details and declare their income on your tax return.

<Details you need from your spouse>

Generally, you would need the following information in regards to your spouse/partner:

> Their full legal name

> Their date of birth

> Their gender and

> Their taxable income.

Usually, the ATO would like to collect as much detail as possible for your spouse/partner’s taxable income such as what they earned, any reportable super contributions they had, any financial losses they made on their investments and/or property, etc. If for whatever reason you are having trouble retrieving all of the information required, it is perfectly fine to make a reasonable estimation of your spouse’s income as long as you have acted reasonably and in good faith upon making the estimation.

<Why do we need to include our spouse’s details on our tax return?>

Declaring your spouse’s income on your tax return is crucial for the ATO to assess whether:

> you are entitled to a rebate for the private health insurance policy you are holding

> you are entitled to the seniors and pensioners tax offset

> you are entitled to a reduction for your Medicare levy

> you are obligated to pay for the Medicare levy surcharge (MLS).

In the end, your tax refund or payable amount may change or remain unaffected depending on your individual circumstances (such as your income, your spouse’s income and the number of dependents you have).

To finish off, if you have any further questions, please reach out to us through our official Facebook Page (P&C Tax Professionals – Australia) or simply send your enquiries to our email address at pnctax@naver.com.

Thank you and bye for now!