Private ruling: Maintenance payments to ex-spouse
Published: June 2012
Ruling period: Year ended 30 June 2010 | Year ended 30 June 2011 | Year ended 30 June 2012 | Year ended 30 June 2013 | Year ended 30 June 2014 | Year ended 30 June 2015
Date scheme commenced: 1 July 2009

Ruling: Q1: Are you entitled to a deduction for maintenance payments paid to your ex-spouse? | A1: No.

Relevant facts and circumstances: In accordance with a Family Court order you are required to pay spousal maintenance to your ex-spouse. No amounts are paid for support of children. The Family Court documents do not indicate whether the amounts paid as spousal maintenance are deductible against your assessable income.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 8-1.

Reasons for decision: Summary: Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) allows a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income, except where the outgoings are of a capital, private or domestic nature, or relate to the earning of exempt income. In your case you made maintenance payments to your ex-spouse in accordance with a Family Court order. This expense was not incurred in relation to your income earning activities and these payments are considered private and domestic in nature. Therefore, you are not entitled to a deduction for maintenance payments under section 8-1 of the ITAA 1997. | Detailed Reasoning - Additional Information:: A private binding ruling applies the law to your specific set of circumstances. There is no discretion available to the Commissioner to allow the maintenance payments you incurred to be a deductible expense.

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