ATO Interpretative Decision
ATO ID 2002/579 (Withdrawn)
Income Tax
Assessability of maintenance paymentsFOI status: may be released
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This ATO ID is withdrawn from the database as it is a simple restatement of the law and does not contain an interpretative decision.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
Status of this decision: Decision Withdrawn 27 June 2008
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Is the taxpayer assessable under section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997) on maintenance payments?
Decision
No. The taxpayer is not assessable under section 6-5 of the ITAA 1997 on maintenance payments as the payments are exempt from tax under section 51-1 of the ITAA 1997.
Facts
The taxpayer receives regular maintenance payments.
These payments are paid by an individual who had been the taxpayer's spouse.
Reasons for Decision
Subsection 6-5(2) of the ITAA 1997 provides that the assessable income of a resident taxpayer includes ordinary income derived directly or indirectly from all sources during the income year.
An amount will not be included in assessable income if the amount is exempt income (subsection 6-15(2) of the ITAA 1997).
Section 51-1 of the ITAA 1997 provides that certain listed amounts will be exempt from income tax. Item 5.1 of section 51-30 of the ITAA 1997 includes in the list periodic payments in the nature of maintenance that meet the requirements of section 51-50 of the ITAA 1997.
Section 51-50 of the ITAA 1997 sets out the conditions on which a periodic payment to a spouse or child which is in the nature of maintenance is exempt from tax. That section provides that the maintenance payment is exempt from income tax only if it is made;
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- by an individual ( the maintenance payer) or is attributable to a payment made by the maintenance payer ; and
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- to an individual who is or has been the maintenance payer's spouse; or
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- to or for the benefit of an individual who is or has been,
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- a child of the maintenance payer; or
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- a child who is or has been a child of an individual who is or has been a spouse of the maintenance payer.
The taxpayer receives regular maintenance payments from an individual who had been their spouse. This payment is exempt from income tax in accordance with section 51-50 of the ITAA 1997 and therefore is not assessable income under section 6-5 of the ITAA 1997.
Date of decision: 3 April 2002Year of income: Year ended 30 June 2000 Year ended 30 June 2001
Legislative References:
Income Tax Assessment Act 1997
section 6-5
subsection 6-5(2)
subsection 6-15(2)
section 51-1
section 51-30
section 51-50
Keywords
Exempt income
Maintenance payments
ISSN: 1445-2782
| Date: | Version: | |
| 3 April 2002 | Original statement | |
| You are here → | 27 June 2008 | Archived |