All Topics / Legal & Accounting / What to do after the birth of our child.
Hello, In August my Defacto Girlfriend had our first child.
I have an IP valued at 360k, still owe 20k
My salary is 155k.My partner works for Rio Tinto and is receiving paid maternity leave for 7 months. She will return to work after a year.
Rio Tinto's employee housing plan pays 80% of the interest on her home loan (PPOR) valued at 800k. She still owes 530k.
Her salary is about 95kAll my previous income tax has been as a "single man".
Is it necessary, or beneficial to change our status for tax reasons.We are looking at buying another IP, but will probably keep it in my name only.
Is it compulsory to disclose your "marital status" to the ATO
thanks to you knowledgable people for sharing your information
Congrats! I hope mum and baby are doing well.
It is necessary to declare your spouse details under certain circumstances. The biggest issues revolve around the medicare levy surcharge (ie private health insurance), child support debts and spouse related tax offsets.
Below is an extract from the 2011 income tax return;
Spouse details – married or de facto
If you completed any of the items listed below, and you had a spouse during 2010–11, or if you consent to use part or all of your 2011 tax refund to repay your spouse’s Family Assistance Office (FAO) debt, you must complete Spouse details – married or de facto.
We need the information included in this section to assess your tax accurately.Did you complete any of the following items or do you consent to use part or
all of your 2011 tax refund to repay your spouse’s FAO debt?T1 Spouse (without dependent child or student) tax offset
T2 Senior Australians tax offset
T3 Pensioner tax offset
M1 Medicare levy reduction or exemption
M2 Medicare levy surcharge – and you printed X in the NO box at E
T7 Superannuation contributions on behalf of your spouse (on the supplementary
section of the tax return)
T10 Parents, spouse’s parent or invalid relative
T13 Entrepreneurs tax offset (on the supplementary section of the tax return)Also, definition of spouse is;
http://www.ato.gov.au/content/00216880.htm
Your spouse includes another person (whether of the same sex or opposite sex) who:
- you were in a relationship with that was registered under a prescribed state or territory law,
- although not legally married to you, lived with you on a genuine domestic basis in a relationship as a couple.
Kohlhagen Group – Great post and good to see you sharing and answering questions, at post number 3
Hope you can stick around, always good to have a experienced accountant around that’s willing to share/help,
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Thanks for the feedback Michael, much appreciated.
When I found this forum I was amazed at the talent and information available. I particularly admired your recent input into what looks like a tricky situation https://www.propertyinvesting.com/forums/getting-technical/finance/4338851
I just had to join in.
Boney
Don't forget to make sure you set up good wills – both and wife. Consider who you would want to be guardian of your children if you were to both die before they reach 18.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thankyou for the replies. Yep, I better update my will too.
Why does the index say there are 12 replies to this, but I only can see 5??
probably because of the recent flood of spam messages. One spammer had 246 posts up in a matter of hours os I think some of hte replies here have been deleted because they were spam.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Also make sure you enjoy as many sleep ins as possible and late nights (of your own choosing!).. while you can
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