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Edited version of private ruling
Authorisation Number: 1011600001679
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Ruling
Subject: Spouse tax offset
Question 1
Are you entitled to a dependant spouse tax offset for the relevant income years?
Answer:
No.
This ruling applies for the following period
Year ended 30 June 2008
Year ended 30 June 2009
Year ended 30 June 2010
The scheme commenced on
1 July 2007
Relevant facts
You met your fiancé a few years ago. Your fiancé currently lives overseas. They are unemployed and a student at a university. You support them financially including paying for their daily living expenses, medical bills, tuition fees and stationery.
Your citizenship status does not allow you to reside permanently overseas and you have work and other commitments in Australia.
Although you have visited your fiancé on a number of occasions mainly during your holidays you and your fiancé have never lived together.
In the relevant income year your fiancé lodged a visa application with the Australian government. You are the sole sponsor.
You intend to marry in Australia in a future income year.
Relevant legislative provisions
Income Tax Assessment Act 1936 Section 159J
Reasons for decision
Subsection 159J (1) of the Income Tax Assessment Act 1936 (ITAA 1936) allows a dependent spouse tax offset where a taxpayer contributes to the maintenance of a dependant, and that dependant is a resident. Subsection 159J(2) provides that a dependent includes a taxpayer's spouse.
Definition of 'spouse'
In relation to the relevant and prior income years the term 'spouse' is defined in subsection 6(1) of the ITAA 1936 and includes another person who, although not legally married to the person, lives with the person on a bona fide domestic basis as the husband or wife of the person.
In relation to the particular and later income years under subsection 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997) a person also qualifies as a 'spouse' if they are not married but in a relationship with another individual and they live with the other individual on a genuine domestic basis in a relationship as a couple.
Your circumstances
You stated in your application submitted in the present income year that your fiancé currently lives overseas. Although you provided financial support to your fiancé and visited them on a number of occasions mainly during your holidays, you did not live with your fiancé on a genuine domestic basis in the relevant income years.
Therefore your fiancé does not fall within the definition of 'spouse' under subsection 6(1) of the ITAA 1936 and subsection 995-1(1) of the ITAA 1997. Therefore you do not have a 'dependant' for the purposes of subsection 159J(2) of the ITAA 1936.
Consequently, you are not entitled to a dependent spouse tax offset for the relevant income years.