Are there are any tax implications once we tie the knot?
- Arnold Shields
- May 20, 2020
- 2 min read
Updated: May 21
Getting Married? Here’s What Changes (and What Doesn’t) for Your Tax
If you’ve recently tied the knot or are planning to, congratulations! One question we get asked often is:“Do we now have to lodge our tax returns together?”
The short answer is no, unless you’re operating a business together.
Separate Tax Returns Still Apply
Each person continues to lodge their own tax return, even after marriage. However, if you have joint investments, such as rental properties, dividends, or interest, you’ll need to declare your individual share in your respective returns.
You must declare that you have a spouse on your tax return and include their taxable income. This information is important for:
Calculating entitlements like Family Tax Benefit or the Child Care Subsidy
Determining whether the Medicare Levy Surcharge applies (e.g. if your combined income exceeds $140,000 and you don’t have private health insurance)
Changing Your Name? It’s Easy
If you’ve changed your name after marriage, simply include the new name on your next tax return. No need to send certified documents, just update it directly with the ATO.
Who Qualifies as a Spouse?
Under current ATO guidelines, your ‘spouse’ may be:
A person of either sex you are married to
A partner you live with in a genuine domestic relationship (de facto)
Someone in a relationship registered under state or territory law
Owning Property Before Marriage? Watch Out for CGT
If both partners own a home before getting married, you can’t claim the main residence CGT exemption on both properties at the same time.
You’ll need to:
Choose one property as the exempt main residence
Apportion the exemption if you want to share it between the two homes
Important:Each property may still qualify for a full exemption for the time before you became spouses.
Example:
Elizabeth bought her home in 1992. She lived in it until she married Joshua in 2006 and moved into his property (bought in 2000). From 2006 onward, they chose Joshua’s home as their main residence. Elizabeth can claim a full exemption on her home up to 2006, but any capital gain after that date may be subject to CGT.
Need Professional Advice?
At Dolman Bateman, we help couples make informed decisions about their financial future, whether it’s CGT, joint investments, or tax planning after marriage. Get in touch with one of our expert accountants today.
Disclaimer:
The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. While every effort has been made to ensure the accuracy of this content at the time of publication, tax laws and regulations may change, and individual circumstances vary. Dolman Bateman accepts no responsibility or liability for any loss or damage incurred as a result of acting on or relying upon any of the information contained herein. You should seek professional advice tailored to your specific situation before making any financial or tax decision.
