Tax question on spouse income

[Tembee]

Hi from a noob!
I have been enjoying reading everyone's tips for money saving (I found the forum by Googling people's opinions of Aussie Farmers Direct, who we've just joined today).

I have a question - my other half is British. He's currently working for a UK company and being paid in pounds etc.
In the Spouse details bit, it wants spouse's taxable income.
Last year we argued that because he's not paying Aussie tax, he's not got what the ATO would consider a 'taxable income'? So I put $0...

This year I'm not as confident of putting $0... I don't want to get in trouble with the ATO.

(They also want spouse's separate net income, which I don't understand what is even though I clicked the link that explains it. - it says "Separate net income (SNI) includes income and other specified amounts that your dependant earned or received in 2008-09 while you maintained them.", but what does it mean by while I maintained them? Maintained who? Or what? The wording confuses me. I don't understand, wouldn't maintain mean take care of them/him/his income or something? I don't understaaaaand! He's not a dependant we're like, equal or whatever, it makes no sense!)

Sorry to barge into the forum and ask such a weird question.

[Bumperstump Cummerbund]

Taxable income - I would agree that if he's not paying Australian Tax, then his tax income would be $0, but I would also ring and check with the ATO just to be sure

Your spouse is dependant if they earn under a certain amount, I think it's $11k or something. If his income is coming from the UK, then he is possibly considered your dependant by australian tax standards, but again, I would ring and speak to them.

Perhaps it would be an idea to get a tax account to do your tax this year?? GL

[Visitor7]

The difference residency makes

Australian residents for tax purposes need to declare income they have earned from anywhere in the world in their tax return. Non-residents need only declare income they derived in Australia.
If you are an Australian resident for tax purposes you:

• are entitled to the tax-free threshold
• can claim tax offsets
• generally have lower tax rates than a non-resident.

If you are a non-resident for tax purposes you:

• have a tax-free threshold of $1 (that is, you pay tax on any assessable income you earn in Australia)
• cannot claim most tax offsets
• do not pay the Medicare levy.

Is your partner an Australian resident, or non-resident?

Many people receive pensions and other income from overseas countries. If you are an Australian resident who has received income from overseas, you must show your foreign income on your tax return.

Foreign income including overseas pensions

[Tembee]

Thanks for the replies, I think what I should do is just call the ATO and confirm before doing anything. Especially if I filled out last year's incorrectly and I owe them money - I should really straighten that out first.
This time I'll make a note of what to do next year and keep it with my tax stuff haha!

[antocarl]

"(I found the forum by Googling people's opinions of Aussie Farmers Direct, who we've just joined today)"

(Sorry all for the off topic)

Hi Tambee, I was just wondering how you are going so far with Aussie Farmers Direct as I am interested in buy their franchise as well. (my email: anca2000 at gmail.com)

Thanks!

[Tembee]

Antocarl -

We subscribe to their services - we haven't bought a franchise?

We get milk, bread, eggs and orange juice delivered twice weekly with no delivery fee. We find their prices reasonable and delivery convenient. We never run out of staples and this avoids paying through the nose at the milkbar too.

[Nelle]

To keep this thread on topic, you'll find threads on buying from Aussie Farmers Direct here, here and here.
You may have to start a separate thread if you're wanting to know about franchising. =)

[antocarl]

Ah OK, I'm sorry, I misunderstood as the topic is about TAX... Thanks for the info from a client perspective anyway. I am glad you are happy.

Cheers!

(sorry everyone)