Tax changes an equaliser

Tax changes an equaliser

Gay and lesbian couples are being reminded they will be treated the same as straight de facto couples for tax purposes for the 2009-2010 financial year.

Assistant Treasurer Senator Nick Sherry reminded same-sex couples that from July 1 they would have the opportunity to include their partner’s income when lodging their tax returns, which is “fairer”.

“While the amount of tax that people have to pay depends on their personal circumstances, including whether they have children, it’s a big win that same-sex couples can, when doing their taxes this year, access a range of tax concessions previously not available to them,” Sherry said.

One tax agent told Sydney Star Observer changes and benefits were dependent upon individual circumstances.

“I think in most cases, with your average couples without children, it will have very little affect whatsoever,” the agent said.

“There can be some advantages and disadvantages depending on income, especially if you might have a disparity between incomes.”

Gay and lesbian couples with children, for example, may not be eligible for the same amount of Family Tax Benefit with a combined income, however are now eligible for medical expenses and dependent spousal tax offsets previously unavailable.

Same-sex couples without children may fair better, now eligible to pay a lower Medicare levy surcharge if their combined income is less than $146,000.

While the move equalises gay couples in areas of tax law, the agent said some clients were not interested in the altered scheme.

“One couple did say, we don’t have marriage rights, so as far as we’re concerned we’re not interested in it at all,” he said.

An Australian Tax Office spokesman told Sydney Star Observer it was up to individuals to provide the correct information on their tax returns.

“The onus is up to the individual to complete their tax return accurately, where they don’t, depending on the circumstances, penalties could apply,” he said.

The changes are a result of 2008 legislative reforms which now recognise same-sex couples in 85 areas of federal law.

info: For more detail on income tax changes for same-sex couples, visit www.ato.gov.au.

QUICK QUESTIONS:

When were the changes implemented?

The changes to recognise same-sex relationships took effect for superannuation purposes on 1 July 2008 and for income tax purposes from 1 July 2009.

Why does the ATO need to ask my gender?
∙ establish proof of your identity
∙ consent to repay your spouse’s Family Assistance Office (FAO) debt
∙ transfer any unused portion of the senior Australian tax offset (SATO) to your spouse
∙ transfer any unused portion of the pensioner tax offset (PTO) to your spouse.
Currently the age pension age is different for males and females and one of the conditions of entitlement to receive a transfer of any unused portion of SATO or PTO is to be the age pension age for your gender.

How should I complete my tax return if I am still married but now in a genuine same-sex de facto relationship?
Generally, you should complete your income tax return based on your domestic situation on 30 June of the relevant financial year.

What happens if our same-sex relationship ends?
From 1 July 2009, a person who was in a same-sex relationship may be recognised as a ‘former spouse’ under a ‘family law obligation’. This means that you may be eligible for:
∙ capital gain tax (CGT) rollover relief if the family home was transferred to you as part of a relationship breakdown settlement, and
∙ a share of the first home saver account contributions made by you while you were living together in a genuine domestic relationship as a couple.

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8 responses to “Tax changes an equaliser”

  1. I dream of an Australia where our government dares to protect all and stand up against those that crush the freedoms of others. A country where we are treated as people first regardless of who we are, and all the majestic colours of the rainbow are celebrated.

    Together we can believe. Together we can dream the dream. Supporting political parties that dream with us will lead to full equality for all Australians, and help influence the world to see all the colours of the rainbow.

    Only the Greens dare to dream that dream.

  2. Argentina, Belgium, Mexico and Portugal – full Catholic nations by the way allowing same sex marriage now – Now I am deeply ashamed and embarrassed to be an Australian now because we are fucking way behind these nations!!!!!!!!

    I am sick and tired of delays and excuses – I only like results and implementation!!!!!

  3. K8- I think you will have to see an accountant and contact Centerlink.

    It would be very sad if people have done this so they do not get reduced payments. I do though understand why they might do this.

  4. What is the tax and social services situation for gay couples living apart but remaining in their relationship – specifically, many have deliberately set up this situation?

  5. Ben- You are wrong to sing the song for Labor. It is out of tune.

    The facts are we are not included in the Federal Equal Opportunity Act. Once this happens, we can use the legislation to stop all areas we are discriminated against.

    Like I said. What date is this going to happen? There is no date. On what you have said we are getting 400,000 dollars for ACON. Well what about the 240 million dollars Labor is giving to the Australian Christian Lobby School Chaplains program?

    I think we are worth a bit more then what Labor is offering for the next term of government. What about school homophobia programs, what about the older members of our community?

    They simply did not come up with all the goods last time. Further they sought to vilify us through the open support of hate groups such as The Australian Christian Lobby. What about the homophobic message that sends to the community? It is ok to bash gays, to abuse them, to make things up about them.

    What about the internet filter? I love my xtube but what about those seeking gay rights? Filtered out along with xtube!

    http://australianchristianlobby.org.au/make-it-count/

  6. Dave, you are quite wrong to trivialise Labor’s support for the Human Rights Commission report and the 58/08 campaign.

    It was the Human Rights Commission who identified that same-sex couples were discriminated in areas of taxation, social security, health and superannuation.

    Labor implemented the Human Rights Commission report, recognising same sex couples for rights and responsibilities.

    And last week Tanya Plibersik announced a $400,000 grant to ACON on the needs of elderly gays and lesbians.

    More needs to be done – formal recognition of same-sex relationships and amending the Federal anti discrimination act to be consistent with the states.

    But for the many campaigners for equality, 58/08 was another battle won and nothing to be sneered at.

  7. So Federal Labor has turned us into Financial Centres.

    We pay better tax but those on Centerlink get less payments.

    What about add us to the Federal Equal Opportunity Act? Now that would be something huge. What about a date for this? That would be even better.

    We are still discriminated against in many Federally funded areas. We still have no promise to even look at it from Federal Labor.

    I think we are worth so much more then just being Financial Centres. It is shame Federal Labor thinks that is all we should be. What about the rest of our rights? What about a date?