Private ruling: Income tax – Exempt income – Maintenance or alimony payments
Date of advice: 29 November 2018
Published: March 2019
Ruling period: Period ending 30 June 2020 | Period ending 30 June 2021 | Period ending 30 June 2022 | Period ending 30 June 2023
Date scheme commenced: 1 July 2019

Ruling: Q1: Are maintenance payments you receive assessable under subsection 6-5(2) of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: No. The maintenance payments you receive from your ex-husband are not assessable income under subsection 6-5(2) of the ITAA 1997.

Relevant facts and circumstances: You are a citizen Australia. Your marriage ended and you are separated from your ex-spouse. You moved back to Australia and became a resident for taxation purposes. Your ex-spouse resides and works in the in country Y. You are receiving country Y court awarded maintenance payments from your ex-spouse and provided details of your marriage settlement agreement. You and your ex-spouse sold a property following an amended agreement. Your ex-spouse has placed their portion of the proceeds into an account which makes maintenance payments to you until the scheduled termination date. You have previously been advised that the maintenance payments were not assessable under subsection 6-5(2) of the ITAA 1997.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subsection 6-5(2) | Income Tax Assessment Act 1997 Subsection 6-15(2) | Income Tax Assessment Act 1997 Section 11-15 | Income Tax Assessment Act 1997 Section 51-50 | International Tax Agreements Act 1953