Frits Coenen

Hi Mimi, I have been offered a permanent position in Australia and am considering to migrate as I have also obtained my PR visa. However I am worried on the alimony I have to pay and the disposable income I would have left after that. While living in the Netherlands, I got divorced and in August 2014, the court ruled I have to pay for maintenance of my ex-spouse for a duration of 12 years. The monthly amount is 3100 Euro (currently 4600 AUD equivalent). One of the considerations that determine the amount of alimony to be paid, is the Dutch tax laws. In the Netherlands, the payee gets tax relief equal to the maintenance amount paid, whilst the recipient has to pay income tax on the amount received. To my understanding under Australian tax laws, this is different. When both payee and recipient are Australian tax residents, the payee does not get tax relief on the maintenance paid to the former spouse, and the recipient does not have to pay income tax on the amount received. As I would become Australian tax resident, I would not have tax relief whilst at the same time the recipient still has to pay taxes in the Netherlands. Effectively this implies double taxation on the alimony. At the same time, whilst potentially earning a decent salary of 150,000 AUD per year, this would hardly leave any disposable income to support myself. I have checked the double-taxation treaty between Australia and the Netherlands, but unlike treaties between Australia and e.g. UK, there is no provision regarding the double taxation of maintenance payments to former spouses (unlike similar arrangements between Australia and e.g. UK). I would therefore like to understand if I would have a fair chance to a apply for a ATO personal tax ruling to request for tax relief on the alimony I have to pay. Or are there other possibilities.