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John Melis
John Melis,
Category: Australia Law
Satisfied Customers: 542
Experience:  Principal Lawyer at Legal AU Pty Ltd
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Are you able to answer Australian tax questions? Victoria. I

Customer Question

Hi, are you able to answer Australian tax questions?
JA: What state are you in? It matters because laws vary by location.
Customer: Victoria
JA: Has anything been filed or reported?
Customer: no, I need to know whether I need to declare something
JA: Anything else you want the lawyer to know before I connect you?
Customer: No, I literally just ned a yes or no to a quick question really.
Submitted: 2 months ago.
Category: Australia Law
Expert:  John Melis replied 2 months ago.

Dear customer, my name is***** solicitor, thank you for using Just Answer, I will assist with your question today. Please allow me a few moments to review your post and I will respond accordingly.

Kind regards
John Melis

Expert:  John Melis replied 2 months ago.

Please advise more detail on your matter?

Kind regards *****

Customer: replied 2 months ago.
Hi John,I bought an apartment in Melbourne in August 2016. It is my primary residence. In Feb 2017, a partner moved in with me and puts money in my account every 2 weeks to cover share of rent and bills. Do I have to declare this money in my tax return?
Expert:  John Melis replied 2 months ago.

Dear customer, this can be argued as living expenses as you are a couple in a relationship and therefore not taxable.

If you were not a couple and the intent was to rent a room for revenue, then technically you need to declare that income, which would then be taxable.

Kind regards *****

Expert:  Leon replied 2 months ago.

Good Morning.

Adding to what nay colleague has said in order for the payments to be declared in you income tax return they have to be assessable income.

The ATO defines assessable income as

  • salary and wages
  • tips, gratuities and other payments for your services
  • allowances for things like car, travel, clothing and laundry
  • interest from bank accounts
  • dividends and other income from investments
  • bonuses and overtime an employee receives
  • commission a salesperson receives
  • pensions
  • rent.

In your circumstances what you are describing is not assessable income and you have not characterised as assessable income but contributions to daily expenses and as you are a couple it would be seen that there is no nancy agreement between you and he is not a tenant.

If he is renting from you under a sublease then the income must be declared and also a share of the expenses set out as deductions.

I hope this gives you greater insight.

Regards

Leon

Expert:  John Melis replied 2 months ago.

Dear customer, generally the best advice on tax matters is to obtain a written report from your accountant. However the advice that you have received in this forum is correct.

Kind regards
John Melis

Expert:  John Melis replied 2 months ago.

Dear customer, if you would like to discuss this matter further, I welcome you to request telephone services.

Don’t forget to rate my service.

Kind regards

John Melis

Expert:  John Melis replied 2 months ago.

Dear customer, if you would like to discuss this matter further, I welcome you to request telephone services.

Don’t forget to rate my service.

Kind regards

John Melis