Private ruling: Child support payments
Published: June 2013
Ruling period: Year ending 30 June 2013
Date scheme commenced: 1 July 2012

Ruling: Q1: Can you claim a deduction for your Child Support payments? | A1: No


Relevant legislative provisions: Income Tax Assessment Act 1997 Section 8-1 | Income Tax Assessment Act 1997 Paragraph 26-40(b)

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. In your case the expenses that you incur in supporting your children are not allowable as a deduction under section 8-1 of the ITAA 1997 as they are not incurred in gaining or producing assessable income and are also private in nature. It further states in paragraph 26-40(b) of the ITAA 1997, that you cannot deduct expenses for maintaining your child under 16 years of age.

Relevant facts: You pay for your children's medical, education and other general living costs by way of Child Support payments.