I'm interested to know more about paying tax as a married couple versus being single. My wife is currently on a bridging visa awaiting approval of the permanent visa application. This normally takes more than a year. She can work on the bridging visa. Will the tax free thresholds change or will we be taxed as individuals? Do they just add up our combined income? Thanks guys.
Paying Tax as a Married Couple with Wife on Bridging Visa
BluebirdV on 29/12/2019 - 14:01
Comments
Thanks. So they don't assess income as a family any different even for Australian citizens?
No.
It would be great if they allowed joint tax returns, would encourage more stay at home parents.
Two parents working 2.5 days a week are better off than one working full time
It would be great if they allowed joint tax returns,
+1 to that
Wow, I never expected that. I thought household income was a thing. I'm really surprised we get assessed as individuals.
I thought household income was a thing. I'm really surprised we get assessed as individuals.
You might have heard about joint tax returns for couples from US media/TV shows. The USA allows joint returns, but not Australia.
If they allowed joint tax returns singles would be disadvantaged.
The tax system isnt perfect, but its got a slimmer of equality.@[Deactivated]: Single would be no worse off (no disadvantage)than they are. and in return you could have slightly lower taxes as you could abolish child care rebate, as it wouldn’t need to exist, or not as heavy. Could also be a slightly higher threshold for singles.
Just think it’s sad people pump out kids and goto work after 6 weeks now, because they can’t do joint tax returns.
It’s retarded thought that I earn a fair bit and wife nothing yet she is penalised when it comes to private health rebate, gov wants it to be assessable as a family when it is convenient to them.
And people wouldn’t have to ???? Around with family trusts and shifting assets to maximise thresholds.
Ireland, uk, Germany, USA do it and I’m sure loads of other countries…
But like compulsory voting this country does some retarded things.
Still the best place to live
@Donaldhump: Your argument regarding kids is not correct because once kids come to the equation the family will be eligible for ftba and ftbb and it acts pretty much as a rebate for joint family tax if total family income is around 100k mark. So in effect the actual tax payable for a 80k+20k is pretty much similar to a 50k+50k couple. But for a relatively well paid couple it no longer hold true
@Donaldhump: Few flaws in your logic.
We're both in the fortunate position to be earning decent bitcoin.
If you do different tax rates for singles and other, then there are two classes of tax payers - keep it simple.
Your family can afford to live of one decent income, which is great. But its your choice, picture a working couple earnibg $50k each, based on your info theyd pay the same taxes as yourself and your spouse, yet they both work - and probably utilse the chid care rebate so they can continue to work.Agree people can utilise trusts and the like to shift income.
Just think it’s sad people pump out kids and goto work after 6 weeks now, because they can’t do joint tax returns.
That's just completely untrue. Paid parental leave is 18 weeks. Plenty of employers are more generous.
It’s retarded thought that I earn a fair bit and wife nothing yet she is penalised when it comes to private health rebate, gov wants it to be assessable as a family when it is convenient to them.
I don't quite understand your logic. Your wife isn't penalised at all - you pay tax on the amount you earn. Why should you get a tax break because your wife doesn't earn anything? That doesn't make much sense to me.
Anyway, this is the problem that I see. You will massively decrease tax revenue. That's because if two people get married (as a sum), they can only ever pay less tax (or the same amount of tax if they earn exactly the same amount as each other). So who will make up the remaining tax? You would have to increase tax rates, which would of course mean that single people pay more tax.
Single would be no worse off (no disadvantage)than they are
My point is, regardless of how you spin it, you are redistributing from single people to married people.
1) If you keep tax rates the same, the total amount of tax collected falls whilst the taxes paid by single people remain the same. Therefore, single people now pay a larger part of the tax burden. Less taxes means less services…etc. So single people don't pay more tax, but they will benefit from less services.
2) If you increase tax rates to keep tax revenue the same, then the burden will fall on single people because they now have to pay more taxes to subsidise the tax cut to married people.
Basically, if you are saying that married people should pay less taxes, that money has to come from somewhere. Whether it is cut government services or single people paying more. In all cases, single people are worse off.
@BluebirdV: Setup trust
Move/xfer income generating assets to trust
Make u ur wife, and who ever u want beneficiary
Pass income to beneficiary with lowest income every tax yearAchieves the same as income splitting.
Also dodgy business owners all employ their wives as enevelope lickers and pay them 30k a year
There is such a thing as household income for tax purposes. It isn't used in the majority of calculations, but it is used (which is why you need to supply it in your annual tax return forms). E.g. the Medicare Levy Surcharge calculation uses it.
Actually for the Family Tax Benefit I would have thought it would be based on household income.
We use your adjusted taxable income to work out your eligibility for some payments or services.
If you have a partner, their income can also affect your adjusted taxable income.
You are talking about paying income tax, not receiving benefit.
So that means they assess you as a household for FTB but as individuals for the income tax return I presume.
No idea abou ftb but more than likely, income is individual.
There's a way to reduce your family contribution by using your income to pay extra into your partner supper if she earn under certain threshold, the gov will add extra into her super to match with your contributions. But she won't be able to withdraw anything in a foreseeable future
Do you have a link to some info about this?
Look up super co-contribution and spouse contribution
Also regarding child care rebate https://www.humanservices.gov.au/individuals/services/centre…
Seems like they will subsidize 85% of the rate up to earnings of about $68,000. So how does this work? Do you take receipts in to Centrelink for what you paid for childcare and then they reimburse you 85% of what you paid?
So how does this work?
Check page you have already quoted.
Are you currently on Christmas Island?
No changes. You both lodge individual returns and pay usual tax. You just include your spouse details in the individual returns.