Joint Account Interest

[can1983]

So if you hold a large sum of money (house deposit) in a joint account and supply the bank your tax file numbers you declare 50:50 (ATO default) each at tax time and pay the required interest. If one of you works and the other doesn't one will pay tax the other wont. ATO matches accounts with a TFN given to check everything is declared.

But this system/rules wouldn't know if you had all the money in the non-working spouse account all interest declared but no tax due as it doesn't exceed the tax free limit. ATO/bank , matches would be made but everything is declared.

Surely you can't simple move joint money into an individual account so its in one name only?

When the money was all in my name (house registered in my name alone) all rent and earnings had to be declared by me alone as my spouse wasn't legally the owner despite it, in reality, being a joint asset (which had tax implications) isn't this just a simple reversal.

 

[rammygirl]

Most of our savings and investments are in my name only (despite it being joint wealth). I don’t work so pay little if no tax.  It is a legitimate strategy.  We are married and the tax office links our returns automatically so they are aware of it.

Once my husband retires we will seek to have any interest, dividends etc divided between us to minimise tax, all perfectly above board.

We still have joint accounts for convenience though and our main house is in joint names.

[can1983]

3 minutes ago, rammygirl said:

Most of our savings and investments are in my name only (despite it being joint wealth). I don’t work so pay little if no tax.  It is a legitimate strategy.  We are married and the tax office links our returns automatically so they are aware of it.

Once my husband retires we will seek to have any interest, dividends etc divided between us to minimise tax, all perfectly above board.

We still have joint accounts for convenience though and our main house is in joint names.

thanks, its silly really that simply moving the money into one name does this. I think we will do it because so long as we don't have a house its $1000 a month which I would have to pay $200 a month tax on. if its all in my partners name we pay nothing (total <$18000 pa)