For many couples, tax time raises the age-old question: is it possible to lodge a joint tax return in Australia, and if not, what’s the best way to optimise your family’s tax position? With the 2025 tax season bringing updated rules and thresholds, it’s vital for Australians to understand how joint income reporting works, what’s changed, and the potential benefits for both married and de facto couples.
Joint Tax Returns in Australia: The Basics
Unlike some countries, Australia does not allow couples to lodge a single, combined (joint) tax return. Instead, each individual must file their own return. However, the Australian Taxation Office (ATO) requires you to disclose your spouse or partner’s income and certain financial details if you are married or in a de facto relationship at any time during the financial year.
- Who counts as a spouse? Married, registered relationships, and de facto couples (including same-sex couples) are recognised by the ATO.
- Income disclosure: You must report your partner’s income, superannuation contributions, and certain investment details—even if you’re not lodging together.
- Family tax benefits: Your combined income can affect eligibility for government payments and offsets.
For the 2024-2025 financial year, the rules around income disclosure for couples remain strict, with penalties for failing to provide accurate information about your spouse’s financial situation.
What’s New for Couples in 2025?
This year, several changes and clarifications impact how couples need to approach tax time:
- Income thresholds for offsets: The Low and Middle Income Tax Offset (LMITO) was removed in 2024, but new thresholds for the Low Income Tax Offset (LITO) and the Seniors and Pensioners Tax Offset (SAPTO) now apply. These are assessed based on individual and sometimes combined incomes.
- Super splitting rules: The ability to split super contributions with a spouse has been clarified, with the 2025 cap for concessional contributions now set at $30,000 per person, up from $27,500. This can offer real tax strategy opportunities for couples planning retirement.
- Family Tax Benefit (FTB) and Child Care Subsidy: Both payments are assessed on combined household income, with indexation of thresholds from July 2025. This may shift some families’ eligibility bands.
For example, a dual-income family with a combined income just below the FTB Part A threshold may find indexation gives them access to higher benefits this year.
Smart Tax Strategies for Couples and Families
While you can’t file a joint return, understanding your household’s combined financial picture can unlock significant tax advantages:
- Maximise deductions: If one partner earns less, consider holding investments in their name to benefit from lower marginal tax rates. This can reduce the overall tax paid on interest, dividends, and capital gains.
- Spouse super contributions: Making after-tax contributions to your spouse’s super can entitle you to a tax offset of up to $540 (if their income is under $40,000).
- Private health insurance: The Medicare Levy Surcharge and Private Health Insurance Rebate are calculated on combined income, so coordinate your cover to avoid surcharges or maximise rebates.
- Offset planning: Check eligibility for SAPTO, LITO, and other offsets based on your incomes—especially if one partner is approaching pension age.
Suppose one partner earns $25,000 and the other $90,000. By holding franked shares in the lower-income partner’s name, the couple may pay no tax on dividends after applying the LITO and franking credits, whereas the higher-income partner would face a much higher tax bill.
Joint Assets and Investment Property: Tax Implications
Joint ownership is common for property, shares, and bank accounts. The ATO treats income and capital gains according to each person’s legal share. For example:
- Joint bank account: Interest is split according to each person’s ownership. If you’re 50/50 owners, each declares half the interest earned.
- Investment property: Rental income and expenses (including negative gearing losses) are split in line with ownership on the property title—not simply who pays the mortgage.
- Capital gains: When selling joint assets, each partner reports their share of the gain (or loss) in their own tax return.
In 2025, the ATO has increased data-matching on investment income, so ensure your records match your ownership structure to avoid compliance headaches.
Conclusion
Australia’s tax system doesn’t allow for true joint tax returns, but couples and families can still benefit from smart income reporting, asset ownership decisions, and careful planning around thresholds and offsets. With new rules and indexation for the 2025 financial year, it’s more important than ever to review your household tax strategy and make sure you’re taking full advantage of available opportunities.
