Issue:
A married couple has a joint private health insurance policy, but they have requested that their spouse's income not be recorded in each other's tax return.
Solution:
Because the private health insurance policy is joint, the ATO requires the spouse's name to be included. However, you can keep the tax returns separate by:
- Unlinking the “Relationship” between the taxpayers as Spouse.
- Manually entering the private health insurance details:
- Code C – Taxpayer
- Code D – Spouse
- Manually control the spouse income fields and leave them unpopulated where appropriate.
This allows the joint private health insurance details to be reported while keeping the spouse income separate as requested.
Also, make sure to remove "Spouse" via "Relationship" tab. Learn more