Private ruling: Rental income
Date of advice: 6 March 2023
Published: 24 April 2023
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you required to declare your share of the rental income in your tax returns? | A1: No. Based on the information provided to the Commissioner, you no longer have a beneficial ownership in the investment properties. You are not required to declare the income from the investment properties in your tax returns.

Relevant facts and circumstances: You and your spouse are no longer together. You and your ex-spouse own XX investment properties. You have recently lodged your income tax return and have excluded the net rental income from the return. You and your ex-spouse have been separated for the entire relevant income year. Up until the previous income year you and your ex-spouse reported the income from the investment properties equally in your returns. For the entire relevant tax year, you have not received any financial benefit from either investment property and you do not directly participate in the ongoing maintenance or decision making concerning either investment property. 100% of the yearly net rental income has been retained by your ex-spouse. Consent Orders have been drafted between you and your ex-spouse which will see the joint ownership of both investment properties be transferred solely into the name of your ex-spouse. The consent orders have not been lodged with the courts yet.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5