Let’s talk about something that pops up a lot come tax time: Do I need to include my partner’s income on my return? It’s a fair question, and the answer depends on a couple of things, starting with how the ATO defines a “spouse.”
So… who is your spouse (according to the ATO)?
Spoiler: it’s not just someone you’ve legally married. The ATO’s definition of a spouse includes both:
Married partners, and
De facto partners (meaning you live together on a genuine domestic basis as a couple, regardless of gender).
If you’re separated or no longer living together, then that person’s not considered your spouse for tax purposes anymore. Simple as that.
What about dating? If we’ve been seeing each other a while…?
Dating does not make someone your spouse in the eyes of the ATO, even if you’ve got matching coffee mugs. The key factors are living together and being in a committed domestic relationship. If you live apart and maintain mostly separate financial lives, you’re likely not considered spouses yet for tax purposes.
When do I need to include my spouse’s income?
Even though you each lodge separate tax returns, the ATO still wants to know some details about your other half’s income, especially if you:
Live together as a couple, and
Are financially tied in any real way.
You’ll need to include their income details if they were your spouse for any part of the financial year (even just a day). Yep, even if they earned zero dollars, you still need to declare it.
Here’s what you might be asked to report:
Taxable income
Reportable fringe benefits
Reportable super contributions
Total net investment losses
Any child support they paid
But why does the ATO even care?
Because certain tax offsets, rebates, and government benefits (like the private health insurance rebate or family tax benefit) are means-tested based on combined income. So your partner’s earnings can impact what you're eligible for, even if they’re not directly involved in your work or business.
TL;DR
Your spouse is anyone you’re married to or live with in a committed, de facto relationship.
You need to include their income on your tax return if they were your spouse at any point during the financial year.
This info helps the ATO work out your eligibility for things like offsets and rebates, it’s not about filing a joint return (we don’t really do that in Australia).