TraderP,
You said:
"I rang the ATO and they could not give me a direct answer , I think they dont know "
a few here like to make fun of and belittle the ATO. Your wife's situation is fairly straight forward. If the person at the ATO who answered your call did not "know" the answer or was unsure of the answer, you should have asked to speak to someone higher up.
The ATO is a large organisation, with different layers of hierarchy and expertise. Generally, the person who answer phone inquiries from the public in the first instant is at the lower end of the hierarchy.