Private ruling: Maintenance payments
Published: June 2012
Ruling period: Year ended 30 June 2011
Date scheme commenced: 1 July 2010

Ruling: Q1: Do the maintenance payments you receive from your spouse form part of your assessable income? | A1: No.

Relevant facts and circumstances: During the 2010-11 financial year your spouse lived overseas. Your spouse paid you maintenance to support your dependent children and assist with mortgage repayments.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subsection 6-5(2) | Income Tax Assessment Act 1997 Section 6-15 | Income Tax Assessment Act 1997 Section 51-1 | Income Tax Assessment Act 1997 Section 51-30 | Income Tax Assessment Act 1997 Section 51-50

Reasons for decision: Summary: Subsection 6-5(2) of the ITAA 1997 provides that the assessable income of a resident taxpayer includes ordinary income derived directly or indirectly from all sources during the income year. An amount will not be included in assessable income if the amount is exempt income. Item 5.1 of section 51-30 of the ITAA states that periodic payments in the nature of maintenance will be exempt from income tax where the payment is made: · by an individual (the maintenance payer) or is attributable to a payment made by the maintenance payer; and · to an individual who is or has been the maintenance's spouse; or · to or for the benefit of an individual who is or has been · a child of the maintenance payer; or · a child who is or has been a child of an individual who is or has been a spouse of the maintenance payer. The maintenance payments you have received from your spouse are exempt from income tax in accordance with section 51-50 of the ITAA 1997 and therefore are not assessable income under section 6-5 of the ITAA 1997.

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