Private ruling: Alimony payments
Published: March 2013
Ruling period: Year ending 30 June 2013 | Year ending 30 June 2014 | Year ending 30 June 2015 | Year ending 30 June 2016 | Year ending 30 June 2017
Date scheme commenced: 1 July 2012

Ruling: Q1: Are you entitled to a deduction for alimony paid to your former spouse? | A1: No.

Relevant facts and circumstances: You pay alimony to your former spouse.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 8-1.

Reasons for decision: Summary: Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) allows a deduction for all losses or outgoings to the extent that they are incurred in gaining or producing assessable income, or are necessarily incurred in carrying on a business for the purpose of gaining or producing assessable income. However, no deduction is allowed where the losses or outgoings are of a capital, private or domestic nature or another provision prevents the taxpayer from deducting it. Alimony payments are amounts payable by order of a court for the support of a former spouse. Your alimony payments were not incurred in earning your assessable income. Furthermore, they are considered to be an expense of a private nature. Accordingly, you are not entitled to a deduction for alimony payments you make to your former spouse under section 8-1 of the ITAA 1997.