Tax Guide for Couples

Are you married, engaged, de facto, or simply living together? Wondering whether you need to include your partner’s information on your tax return? This commonly confusing question will be explained now thanks to the following detailed couples tax guide. Continue reading and let Syndeo Group tell you everything you need to know about this year’s tax obligations.

The Syndeo Group is one of the most experienced and reputable companies in Queensland offering financial assistance. Therefore, an accountant or a tax agent from the company will be able to tell you exactly what your relationship means for your tax return. So, let’s have a look at this simple couples tax guide:

Do you Have a Spouse or De-facto According to the ATO?

Once you know the answer to this question, you will know, for sure, whether your partner’s information should be included in your next tax return. But, how does the tax system determine whether you have a spouse or de-facto partner? Namely, you don’t have to be legally married in order to have a spouse or de-facto in the eyes of the ATO. You should only answer ‘yes’ to the following questions and the person (regardless of the sex) will be considered as your spouse or de-facto:

  • Are you in a relationship?
  • Do you live with that person as a couple in a domestic relationship?

And, of course, if you are already legally married, your partner is obviously considered as your spouse for tax purposes.

How can this Affect your Tax Obligations?

According to the Australian tax rules, every person should fill out their own tax return. Joint tax return doesn’t exist. But, if you are considered to have a spouse or de-facto in the ATO’s eyes, then you must include your partner’s tax information in your tax return.

Here’s what information you should include:

  • Salary and wage
  • Interest income
  • Dividends
  • Rental income
  • Foreign source income
  • Child support payments

How can this Affect your Tax Refund?

If you are considered to have a spouse according to the ATO, several thresholds for things like Medicare Levy, Family Tax Benefits, Private Health Rebates, and Childcare payments will be determined on the combined income.

However, bear in mind that you must add your spouse in your tax return. You simply can skip this and try to hide it from the ATO. The truth is, it’s just a matter of time when the ATO finds out about your missing spouse since it uses high-tech data matching techniques.

In this case, the ATO will revise your tax return and possibly issue financial penalties for inaccurate lodgements. There isn’t a way you and your partner can escape from your tax obligations as a couple. So, you’d better seek professional tax return help.

Final Thoughts

If you still have any other questions or are still unsure whether you need to include your partner’s information on your next tax return, feel free to give Syndeo Group a call and ask one of the well-qualified accountants. With our help, you will soon figure out your tax obligation and everything else that’s unclear.