Split income requirements ?

[Acestar]

Hi guys,

I am new to this and as I heard about it online I was not sure if this idea of split income can be done with any type of income or only with a family business.

In my case I work for a company full time and my wife used to work another company while she makes less than me. We have one kid and right now she is on maternity leave.

Does this split income option benefit us in anyway?

Thanks
Raj

 

[k.h.p.]

Do you own either of these companies?

Split income ("income sprinkling") is a tax loophole for people who own businesses and split the business income amongst the family, avoiding paying higher income tax.

It doesn't allow you to average incomes between your wife and you.