Offloading Tax Liabilities Between Spouses

With property division between separated spouses, it has always been the position that the tax liability of one spouse is taken into consideration as part of the settlement as a liability of the marriage. However, as a result of the High Court decision of the Commissioner of Taxation v Tomaras [2018] HCA 62 handed down on the 13th of December 2018, the situation has advanced to where one spouse can actually substitute for the other spouse in terms of a liability owing to the Australian Taxation Office. Will this open the flood gates for one spouse to avoid paying tax at the expense of the other spouse?

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