BUSINESS OWNERS
1. I’m in business - Do I need to register for GST?
If you are registered for GST – or required to be – the goods and services you sell in Australia are taxable unless they are GST-free or input taxed.
Non-profit organisations may be entitled to concessions on some transactions.
Follow the links below for more information about:
See also:
- GST concessions – Tax basics for non-profit organisations
- Tax invoices
- Option to reverse charge in the precious metal industry
2. What are my obligations as an employer of staff?
Employing staff means meeting a number of legal obligations. Before employing staff, you need to have an understanding of:
- which industrial relations system you come under
- equal opportunity laws
- pay and employment conditions
- tax and superannuation
- keeping employment records
- leave entitlements
- ensuring a safe workplace
- workers’ compensation insurance
- injury management
Determine which industrial relations system you belong to
In Western Australia, businesses may belong to either the state industrial relations system or the national system. Your obligations will differ depending on which system applies to your business
Learn more about the industrial relations systems and how to determine which system applies to your business.
Equal opportunity laws
When recruiting staff it is unlawful to discriminate based on gender, age, marital status, religion, race, impairment, pregnancy, family status etc.
Find out more about your obligations from the Equal Opportunity Commission.
Pay and employment conditions
You can avoid costly mistakes by understanding the required pay and employment conditions.
If you are in the state system, contact Wageline for more information. If you are in the national system, contact the Fair Work Ombudsman for more information.
Tax and superannuation
You will be required to report employee earnings to the Australian Taxation Office (ATO); collect pay as you go withholding (PAYG), report fringe benefit tax (FBT) and contribute to employee superannuation funds.
You may also be required to pay payroll tax.
The ATO has information regarding PAYG, FBT and superannuation payments and short videos about your employer obligations.
The Department of Finance can provide information about payroll tax .
TIP: The Small Business Superannuation Clearing House is a free service you can use if you are a business with 19 or fewer employees, or have an annual aggregated turnover of less than $10 million.
A data and payment standard called SuperStream has been introduced by the ATO. All businesses must be compliant with SuperStream. The clearing house can assist you.
Keeping employment records
These could include timesheets, payslips and pay summaries, tax file declarations, and superannuation payments.
Time and wages records must be kept for seven years.
If you are in the state system, information and templates are available from the Department of Mines, Industry Regulation and Safety. If you are in the national system, information and templates are available from the Fair Work Ombudsman.
Leave entitlements
In addition to annual or sick leave you also need to understand your obligations regarding staff long service leave and parental leave.
More information is available from the Department of Mines, Industry Regulation and Safety (State system) or the Fair Work Ombudsman (national system).
TIP: In Western Australia you must comply with the state long service leave requirements regardless of which industrial relations system your staff come under. The construction industry has particular long service leave requirements.
You may also need to make payments to eligible staff under the Commonwealth Paid Parental Leave Scheme.
Ensuring a safe workplace
You are legally obliged to ensure a safe workplace and look after the health and safety of your employees and customers. Penalties can apply if you do not meet your Occupational Health and Safety (OHS) obligations.
WorkSafe WA is responsible for overseeing workplace safety in Western Australia.
To understand your OHS obligations further and to download templates to use within your business see WorkSafe WA.
Ensure that you have workers’ compensation insurance
You are legally required to have workers’ compensation insurance for your staff, including contractors and any family members who work in your business. This insurance is mandatory if you employ people.
To understand more about your obligations visit the WorkCover WA website.
Download and read the employer publications produced by WorkCover WA.
Injury management
You are legally obliged to have a documented injury management system that outlines the steps to be followed if an injury occurs in your workplace. Penalties can apply if you fail to meet this obligation.
WorkCover WA has information and templates to help you to create an injury management system.
3. I’m starting a business - What are the types of Business structures and their tax consequences?
There are four commonly used business structures in Australia:
It’s important to understand the responsibilities of each structure because the structure you choose may affect:
- the tax you’re liable to pay
- asset protection
- costs.
You’re not locked into any structure and you can change the structure as your business changes or grows.
If you’re unsure which structure to choose, we recommend you talk to your tax, business or legal adviser.
See also:
- Business structureExternal Link – business.gov.au
4. When are Business Tax returns and BAS Lodgements Due?
Key lodgment and payment dates for 2021–22 are:
- July 2021
- August 2021
- September 2021
- October 2021
- November 2021
- December 2021
- January 2022
- February 2022
- March 2022
- April 2022
- May 2022
- June 2022
This list of key dates is not comprehensive – it is a guide only. Events or timelines may change. Unless otherwise stated, the due dates provided are for 30 June balancers only.
When a due date falls on a Saturday, Sunday or public holiday, you can lodge or pay on the next business day.
The payment due dates for a tax return are determined by client type, the lodgment due date and when the return is lodged.
6. What do I do if I cannot afford to pay the tax I owe to the ATO?
If you’re unable to pay on time, you may be able to set up a payment plan to pay by instalments.
You still need to lodge your activity statements and tax returns on time, even if you can’t pay by the due date. This will show us you’re aware of your obligations and doing your best to meet them.
Find out about:
- Payment plans
- Interest-free payment plans for overdue activity statement amounts
- Secured payment plans
- HELP and SFSS
See also:
Payment plans
When setting up a payment plan, you need to consider:
- how much you can pay so you can meet each scheduled instalment (including interest that may accrue on any overdue amounts)
- your future obligations.
In some instances, we may need to know more about your financial situation and circumstances. This is so we can work with you to set up a manageable payment plan that suits both of us.
Otherwise see the information below about payment plans for:
Individuals and sole traders
The easiest way to set up a payment plan if you owe $100,000 or less is by using our online services.
To use our online services, you’ll need a myGov account linked to the ATO. You may be eligible to set up, adjust or cancel an existing payment plan.
Our aim is to help you pay amounts you owe in the shortest time and saving you interest.
When you set up a payment plan you’ll be provided with:
- an upfront amount you need to pay
- examples of instalment amounts that have been manageable for clients with similar circumstances to yours.
You can vary the upfront and instalment amounts above or below the amounts provided – up to certain values.
If you can’t afford a payment plan that’s offered online, or you owe more than $100,000, phone us on 13 11 42 during our operating hours to discuss your options.
Before you call, we recommend using our payment plan estimator to work out a plan you can afford.
Next steps:
- Log in to myGov, or create a myGovExternal Link account and link it to the ATO.
- Use the payment plan estimator to work out a plan you can afford.
Automated phone service
You may be able to use our automated phone service to arrange a late payment or to pay by instalments. You’ll need your Australian business number (ABN) or tax file number (TFN) and the full details of your outstanding amount.
If you can’t enter into a payment plan through our automated phone service, during our operating hours, you’ll be connected to a person who will help you.
Next step:
- Phone our automated service on 13 28 65.
Businesses
If your business owes $100,000 or less, you can propose a payment plan:
- via Online services for businessExternal Link and choosing Accounts and payments then payment plans
- by phoning our automated phone service on 13 72 26
- through your registered tax agent or BAS agent who can use online services to enter a payment plan on your behalf
If you can’t enter into a payment plan using our automated phone service, you’ll be connected to a person (during our operating hours) who will help you.
To set up a payment plan you’ll need your ABN or TFN, and the full details of your outstanding amount.
If you have overdue amounts from activity statements, you may be eligible for an interest-free payment plan.
If your business owes over $100,000, phone us on 13 11 42 during our operating hours to discuss your options.
Before you call, we recommend using our payment plan estimator to work out a plan you can afford.
Next steps:
- Log in to Online services for businessExternal Link
- Phone our automated service on 13 72 26.
- Use the payment plan estimator to work out a plan you can afford.
See also:
Registered agents
If you’re a registered tax or BAS agent, you can use our Online services for agents to view, set up, adjust or cancel a payment plan for your client.
You can set up a payment plan if your client:
- has an existing debit amount less than $100,000 (total balance or overdue amounts)
- does not already have a payment plan for that debit amount
- hasn’t defaulted on a payment plan for the relevant account more than twice in the past two years.
Next steps:
- Set up a payment plan on behalf of your client using Online services for agents.
- Phone 13 72 86 to discuss your client’s situation – use our fast key code guide to get in touch with the right area.
Interest-free payment plans for overdue activity statement amounts
Small businesses that owe activity statement amounts may be able to pay these off interest-free over 12 months.
Eligibility
You may be eligible for an interest-free payment plan if your business:
- has an annual turnover of less than $2 million
- has recent amounts owed from an activity statement of $50,000 or less that has been overdue for no longer than 12 months
- has good payment and lodgment history including
- no more than one payment plan default within the last 12 months
- no outstanding activity statement lodgments
- is unable to obtain finance (such as a loan) through normal business channels
- is able to demonstrate ongoing viability.
How it works
You must agree to a payment plan that allows the amounts owed to be paid by direct debit within 12 months. Even if you receive a letter stating that interest will apply, it will be remitted as long as you maintain your payment plan.
While you’re paying off your bill:
- you can check your running account balance by logging into the Online services for businessExternal Link, or phoning us on 13 28 66 (8.00am to 6.00pm, Monday to Friday)
- you must meet all of your other payment and lodgment obligations.
Registered tax or BAS agents can check the running account balance by using Online services for agents, or phoning 13 72 86 (Fast Key Code 1 2 5 1).
If you’re already in a payment plan
You can ask us to change your existing payment plan to an interest-free payment plan if you satisfy the eligibility criteria.
If your request is approved, we’ll cancel your previous plan. The interest-free period will start from the date you enter into the new plan.
Next step:
- Phone us on 13 28 66 during our operating hours to change to an interest-free payment plan.
Secured payment plans
If we can’t reach an agreement with you about paying amounts you owe, we may consider accepting an offer of security where you either:
- request we defer the time of payment of a debt
- seek to pay a debt by instalments.
Our preferred securities are:
- a registered mortgage over freehold property
- an unconditional bank guarantee from an Australian bank.
For more information about a secured payment phone us on 13 11 42 during our operating hours.
See also:
- PS LA 2011/14 General debt collection powers and principles
HELP and SFSS
If your tax notice of assessment includes a compulsory Higher Education Loan Program (HELP) or Student Financial Supplement Scheme (SFSS) repayment that would cause serious hardship, you can apply to defer it.
If there are other reasons you believe you shouldn’t make a compulsory repayment, you can also apply to defer it.
Next step:
- See Deferring repayments to defer your compulsory HELP or SFSS repayment.
I AM AN EMPLOYEE
1. How do I know my tax bracket and tax rate?
These income tax rates show the amount of tax payable in every dollar for each income tax bracket depending on your circumstances.
Find out about the tax rates for individual taxpayers who are:
Residents
These rates apply to individuals who are Australian residents for tax purposes.
Resident tax rates 2021–22
Taxable income | Tax on this income |
---|---|
0 – $18,200 | Nil |
$18,201 – $45,000 | 19 cents for each $1 over $18,200 |
$45,001 – $120,000 | $5,092 plus 32.5 cents for each $1 over $45,000 |
$120,001 – $180,000 | $29,467 plus 37 cents for each $1 over $120,000 |
$180,001 and over | $51,667 plus 45 cents for each $1 over $180,000 |
The above rates do not include the Medicare levy of 2%.
Resident tax rates 2020–21
Taxable income | Tax on this income |
---|---|
0 – $18,200 | Nil |
$18,201 – $45,000 | 19 cents for each $1 over $18,200 |
$45,001 – $120,000 | $5,092 plus 32.5 cents for each $1 over $45,000 |
$120,001 – $180,000 | $29,467 plus 37 cents for each $1 over $120,000 |
$180,001 and over | $51,667 plus 45 cents for each $1 over $180,000 |
The above rates do not include the Medicare levy of 2%.
See also:
Foreign residents
These rates apply to individuals who are foreign residents for tax purposes.
Foreign resident tax rates 2021–22
Taxable income | Tax on this income |
---|---|
0 – $120,000 | 32.5 cents for each $1 |
$120,001 – $180,000 | $39,000 plus 37 cents for each $1 over $120,000 |
$180,001 and over | $61,200 plus 45 cents for each $1 over $180,000 |
Foreign resident tax rates 2020–21
Taxable income | Tax on this income |
---|---|
0 – $120,000 | 32.5 cents for each $1 |
$120,001 – $180,000 | $39,000 plus 37 cents for each $1 over $120,000 |
$180,001 and over | $61,200 plus 45 cents for each $1 over $180,000 |
Children
If you are under the age of 18, and receive unearned income (for example, investment income), special rates apply.
See also:
Working holiday makers
These rates apply to working holiday maker income regardless of residency for tax purposes.
You are a working holiday maker if you have a visa subclass:
- 417 (Working Holiday)
- 462 (Work and Holiday).
Working holiday maker tax rates 2021–22
Taxable income | Tax on this income |
---|---|
0 – $45,000 | 15% |
$45,001 – $120,000 | $6,750 plus 32.5 cents for each $1 over $45,000 |
$120,001 – $180,000 | $31,125 plus 37 cents for each $1 over $120,000 |
$180,001 and over | $53,325 plus 45 cents for each $1 over $180,000 |
Working holiday maker tax rates 2020–21
Taxable income | Tax on this income |
---|---|
0 – $45,000 | 15% |
$45,001 – $120,000 | $6,750 plus 32.5 cents for each $1 over $45,000 |
$120,001 – $180,000 | $31,125 plus 37 cents for each $1 over $120,000 |
$180,001 and over | $53,325 plus 45 cents for each $1 over $180,000 |
Calculators
A simple tax calculator is available to help you calculate the tax on your taxable income.
The Income tax estimator gives you an estimate of the amount of your tax refund or debt, and takes into account:
- the Medicare levy
- higher education loan scheme repayments
- tax offsets
- tax credits.
Tax deducted from your pay
If you want to know how much your employer (or other payer) is required to withhold from payments to you, use our Tax withheld calculator.
Our other useful calculators include:
See also:
- Tax tables
- Your income if you are under 18 years old
- Individual income tax rates for prior years
- Video tax tips on atoTVExternal Link
If you need help applying this information to your personal situation, phone us on 13 28 61.
2. When will I get my refund?
Check the progress of your tax return using our self-help services.
Most tax returns lodged online are processed within two weeks. We process paper tax returns manually and this can take up to 10 weeks (may take up to seven weeks to show on our systems).
If your tax return requires manual checks processing it may take longer.
On this page
- How to track the progress of your tax return
- Status of your tax return
- Email and SMS communications
- Why there may be a delay in processing your tax return
- Your notice of assessment
If you need to fix a mistake or have forgotten to include something in your tax return, see Correct (amend) your tax return.
How to track the progress of your tax return
The quickest and easiest way to check the progress of your tax return is by using our self-help services.
You can check:
Once your tax return processes, we’ll issue a notice of assessment that will show:
- tax you owe on your taxable income
- credit you have for tax already paid during the income year
- tax amounts you need to pay or will receive as a refund.
See also:
Check online using myGov
If you link your myGov account to the ATO you can check the progress of your tax return or amendments through your myGov account.
To check the progress of your tax return:
- sign in to myGovExternal Link
- select ATO from your member services
- from the home page select Manage tax returns
- then select the income year you are checking.
The status shows how your tax return is progressing.
If you don’t have a myGov account, it’s easy to create an account and link it to the ATO.
Check the progress in the ATO app
To check the progress of your 2020–21 tax return in the ATO app:
- login to the ATO app
- select Your tax return for 2020–21.
The status will be displayed on the screen within the ATO app. Use the help function for more information by selecting ‘?‘ from the top right-hand side of the screen in the app.
Check by phone
Use our self-help phone service at any time:
- phone 13 28 65 – have your tax file number handy
- choose option 1 and then option 1.
Check with your registered tax agent
If you lodge with a registered tax agent, you or your agent can check the progress of your tax return anytime by signing in to ATO online services through myGov or the ATO app.
Status of your tax return
When you check the progress of your tax return using our online services, you might see one of these statuses (not all tax returns will display all of these):
- In progress – Processing
You may see this status at two stages of processing:- we have received your tax return and we’ve started processing it
- we have finalised your tax return and are issuing a notice of assessment (you will see an estimated assessment issue date by clicking the down arrow).
- In progress – Information pending
We are collecting information to help us finish processing your tax return. We will contact you if we need more information. - In progress – Under review
We are manually reviewing your tax return to make sure everything is right before we finalise it. This may include reviewing your prior year returns. We will contact you if we need more information. - In progress – Balancing account
We are balancing the result of your tax return with your accounts with us and other Australian Government agencies and calculating the amount we will refund or you need to pay. We will contact you if we need more information. - Issued – $ Amount
You’ll be able to see your notice of assessment online, along with the date for payment and if you’re entitled to a refund.
If you provided valid Australian bank account details to us when you lodge, we will pay your refund directly into the bank account you nominate.
Email and SMS communications
We may send you an email or SMS (text message) to let you know:
- if your tax return or refund has been delayed and why
- when your refund is on its way.
Our messages will never ask you to reply by SMS or email to provide personal information, such as your tax file number (TFN).
Why there may be a delay in processing your tax return
Although most tax returns lodged online will be processed in two weeks, some tax returns may take longer to process. For example, if:
- you attempt to lodge your tax return again after previously lodging
- you have made an amendment before we finish processing your original tax return or any previous amendments
- you lodge tax returns for several years at once
- you are under an insolvency administration – for example bankruptcy or debt arrangement (check to make sure your insolvency practitioner advises us of your situation before you lodge your tax return)
- the Australian financial institution account details you included in your tax return are not current
- we need to check information in your tax return – we may need to contact your employer, financial institutions, private health insurers or you to confirm or cross-check information in your tax return
- we need to check information with other Australian Government agencies, for example, Services Australia, including Centrelink or Child Support – we’re required to pay part or all of your tax refund to other agencies if there are outstanding amounts (you will be notified if this was the case)
- you have a tax debt or previously unresolved tax debt with us
- you have a tax debt that was previously put on hold (also known as a re-raised or non-pursed debt) – see Using refunds or credits to pay debt.
If your tax return is delayed, you do not need to contact us. We will contact you if we need more information and will keep you or your agent informed of any ongoing delays.
If you think your circumstances put you under serious financial hardship review your eligibility to request priority processing.
Your notice of assessment
Once we’ve processed your tax return, we’ll issue your notice of assessment telling you if you will receive to a refund or that you have a tax debt to pay. You will also receive a tax receipt showing how your taxes have been allocated to key categories of government expenditure
If you have a myGov account linked to the ATO, your notice of assessment and tax receipt will be sent to your myGov Inbox. You will receive an email or SMS from myGov telling you that you have mail.
If you lodge your tax return by mail, your paper notice of assessment and tax receipt will be sent to the postal address we have for you.
Find out about:
3. Why do I need to include my spouse’s income to my tax return?
https://community.ato.gov.au/s/login/?ec=302&inst=9s&startURL=%2Ft5%2FTax%2FSpouse-details-and-your-tax-return%2Fta-p%2F8126
4. What is a TPAR (Taxable Payments annual report) and why do I need to lodge one?
Businesses and government entities who make payments to contractors may need to report these payments and lodge a Taxable payments annual report (TPAR).
Contractors can include subcontractors, consultants and independent contractors. They can operate as sole traders (individuals), companies, partnerships or trusts.
A TPAR must be lodged by 28 August each year.
In this section
Businesses may need to lodge a TPAR when they make payments to contractors for relevant TPAR services. Government entities may need to lodge a TPAR for payments for services and grants paid to people and organisations.
See how to prepare and lodge your TPAR. Understand what contractor details you need to report and how to amend a lodged TPAR form.
Watch the introduction to the Taxable payments reporting system:
How contractors can meet their tax obligations
Contractors should:
- lodge tax returns by the due date
- include all income in the tax return
- lodge any tax returns for previous financial years as soon as possible
- lodge activity statements by the due date
- quote the correct and current Australian business number (ABN) on all invoices
- make a voluntary disclosure if a mistake was made on a previously lodged tax return. Penalties may be reduced when voluntarily disclosures are made
- keep records of all the income received and payments made. Keeping records of all business transactions helps to report income and claim deductions
- check that all other tax obligations are met.
How we use the information in a TPAR
We use the information in a TPAR to put income information into the online tax returns of contractors.
Why we collect contractor information
The TPAR system aims to:
- create a level playing field
- prevent dishonest operators from gaining an unfair advantage over the majority
- identify contractors who do not meet their tax obligations.
5. How can I add more money to my super?
You can add to your super by entering into a salary sacrifice arrangement with your employer, making personal super contributions, transferring super from foreign super funds or you may be eligible for government contributions.
There are limits on how much you can contribute to your super each year.
Find out about:
- Salary sacrificing super
- Payment of super from foreign super funds
- Government super contributions (including co-contributions)
- Personal super contributions
- Downsizing contributions into super
- Tax on contributions
See also:
6. What expenses can I claim in my tax return?
When completing your tax return, you’re able to claim deductions for some expenses. Most are costs you incur to earn your employment income. This information is available in other languages to help people from non-English speaking backgrounds. Select your language, then Individuals from the menu to access this information in your language.
On this page:
- Work-related expenses
- Other deductions
- Occupation and industry specific guides
- Managing your deductions
Work-related expenses
To claim a deduction for a work-related expense:
- you must have spent the money yourself and weren’t reimbursed
- the expenses must directly relate to earning your income
- you must have a record to prove it (usually a receipt).
If the expense was for both work and private purposes, you only claim a deduction for the work-related part. Work expenses your employer reimburses you for are not deductible.
If we think your employer may reimburse you for your expenses we may ask them.
You may be able to claim a deduction for expenses you incur that relate to your work, including:
- Transport and travel expenses
- Clothing, laundry and dry-cleaning expenses
- Working from home expenses
- Self-education expenses
- Tools, equipment and other assets
- Other work-related deductions
Employees (including casuals) can claim work-related expenses in the income year you incur them. This means if you start employment in June you can claim deductions for work-related expenses you incur in June. Even if you don’t receive your employment income until the next income year.
If you employ someone to assist you in your employment, generally you can’t claim a deduction for employing that person.
Other deductions
You may also be able to claim a deduction for:
- ATO interest – calculating and reporting
- Cost of managing tax affairs
- Gifts and donations
- Interest charged by the ATO
- Interest, dividend and other investment income deductions
- Personal super contributions
- Undeducted purchase price of a foreign pension or annuity
- Income protection insurance
Occupation and industry specific guides
Our occupation and industry specific guides provide information about income, allowances and deductions you can claim for work-related expenses.
Watch: Get your deductions right
This video shows how to get your deductions right.
Managing your deductions
You need to keep records for most expenses. Use the myDeductions tool in the ATO app to keep records of your work-related and general expenses in one place. It’s an easy way to capture information on the go and makes completing you tax return quicker.
You can use the myDeductions tool to:
- upload your records
- pre-fill your myTax return.
If you use a registered tax agent, you can share your records with them by emailing them a copy or they can access your uploaded records from their software management.
The myDeductions record-keeping tool helps you keep records for:
- all work-related expenses (including car trips)
- interest and dividend deductions
- gifts or donations
- costs of managing tax affairs
- sole trader expenses and business income
- other deductions.
Watch: How to add and review deductions in myTax
This video shows how easy it is to keep your records using myDeductions.
See also:
7. Who is a dependent for tax purposes?
Definitions
Child
A child includes:
- your child
- your adopted child, stepchild or ex-nuptial child
- a child of your spouse
- someone who is a child of yours within the meaning of the Family Law Act 1975.
Dependant
There are three different categories of dependants:
- Dependant for Medicare levy surcharge purposes
- Dependant for Medicare levy or half levy exemption purposes
- Dependent child for Medicare levy family income reduction purposes.
Dependant for Medicare levy surcharge purposes
A dependant for Medicare levy surcharge purposes is a person wholly or partly maintained by you who is:
- your spouse (of any sex)
- a child aged under 21 years
- a child aged 21 years to under 25 years who is a full-time student at a school, college or university.
Dependant for Medicare levy or half levy exemption purposes
A dependant for Medicare levy exemption purposes means a person who is:
- a spouse (of any sex)
- a child aged under 21 years
- a child aged 21 years to under 25 years who is a full-time student at a school, college or university and has adjusted taxable income of less than $1,786 for the year.
If both you and your spouse are in Medicare levy exemption Category 1 and you have dependent children who are not in any exempt category, one of you can claim a full levy exemption and the other a half levy exemption. You must complete a family agreement to nominate who will pay the half Medicare levy and keep it with your financial records.
Dependent child for Medicare levy family income reduction purposes
A dependent child for Medicare levy reduction purposes means a person maintained by you who is a child aged:
- under 21 years who is not a full-time student and whose adjusted taxable income is less than $1,786 for the first child or $1,410 for any additional child
- under 25 years and is a full-time student at a school, college or university and has adjusted taxable income of less than $1,786 for the year.
If you were not married on the last day of the income year or were married but living apart from your spouse, you must have received family tax benefit for that child or student for some part of the income year for them to be considered a dependant for family income reduction purposes.
Spouse
Your spouse is a person (of any sex) who:
- you are in a relationship with that is registered under a prescribed state or territory law, or
- although not legally married to you, lives with you on a genuine domestic basis in a relationship as a couple.
Spouse weekly income
If the income of your spouse consists solely of salary or wages, the amount to be taken into account is the gross weekly earnings before tax. If your spouse has income other than earnings (for example, share dividends), you must take into account the weekly equivalent of all their income. To obtain this amount, divide their estimated taxable income from all sources by 52.
Medicare levy – income for surcharge purposes
A person’s income for surcharge purposes for a financial year is the sum of their:
- taxable income including the net amount you have paid family trust distribution tax on (excluding any First home super saver released amount)
- exempt foreign employment income (if your taxable income is $1 or more)
- reportable fringe benefits as reported on your payment summary or income statement
- reportable super contributions (this includes both reportable employer super contributions and deductible personal super contributions)
- if you have a spouse, their share of the net income of a trust on which the trustee must pay tax (under section 98 of the Income Tax Assessment Act 1936) and which has not been included in their taxable income
- total net investment loss (this includes both net financial investment loss and net rental property loss).
If you were aged from your preservation age to under 60 years old, any taxed element of a super lump sum, other than a death benefit, which you received that does not exceed your low rate cap is excluded from your income for surcharge purposes.