Private ruling: Medicare Levy Surcharge-Dependent
Date of advice: 19 October 2017
Published: March 2018
Ruling period: 30 June 2017
Date scheme commenced: 1 July 2016

Ruling: Q1: Is your spouse considered a dependent for Medicare Levy Surcharge purposes? | A1: No.

Relevant facts and circumstances: You are legally married under state law. You obtain an appropriate level of Private Health Insurance. Your spouse does not obtain an appropriate level of Private Health Insurance. You currently have a mortgage and reside in a unit. You and your spouse agreed to maintain your independence whilst married, this included living separately and not financially supporting one another. A number of weeks into your marriage, your spouse suffered an illness. Due to your spouses’ health, they chose to move and rent the unit beside you. You and your spouse do not share any assets or bills and have not nor do you intend to contribute to the maintenance of one another.

Relevant legislative provisions: Section 251R, Income Tax Assessment Act 1936

Reasons for decision: Summary: While these reasons are not part of the private ruling, we provide them to help you to understand how we reached our decision. | Detailed Reasoning - Detailed reasoning: For Medicare Levy Surcharge purposes, your spouse is generally considered a dependent regardless if they worked or had their own income. Your spouse includes another person of the same or opposite sex with whom: ● you were in a relationship registered under a prescribed state or territory law (legally married) or ● you lived on a genuine domestic basis in a relationship as a couple although not legally married (de facto). If you are living apart from your spouse we treat you as not being married. For Medicare Levy Surcharge purposes dependents must be Australian residents and you must have contributed to their maintenance. Although you and your spouse are Australian residents, you do not contribute to the maintenance of one another. Having considered your circumstances and the relevant factors, the Commissioner does not consider your spouse a dependent for Medicare Levy Surcharge purposes.

The advice in the Register has been edited and may not contain all the factual details relevant to each decision. Do not use the Register to predict ATO policy or decisions.