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Edited version of your private ruling
Authorisation Number: 1012440292317
Ruling
Subject: Alimony payments
Question:
Are you entitled to a deduction for alimony paid to your former spouse?
Answer
No.
This ruling applies for the following periods
Year ending 30 June 2013
Year ending 30 June 2014
Year ending 30 June 2015
Year ending 30 June 2016
Year ending 30 June 2017
The scheme commenced on
1 July 2012
Relevant facts and circumstances
You pay alimony to your former spouse.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1.
Reasons for decision
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.
Alimony payments are amounts payable by order of a court for the support of a former spouse.
Your alimony payments were not incurred in earning your assessable income. Furthermore, they are considered to be an expense of a private nature.
Accordingly, you are not entitled to a deduction for alimony payments you make to your former spouse under section 8-1 of the ITAA 1997.