Income Tax Assessment (1936 Act) Regulations 2025

PART 5 - REBATES  

Division 1 - Tax rebate for low income aged persons and pensioners  

SECTION 12   TRANSFER OF UNUSED BASE REBATE AMOUNT FROM INDIVIDUAL TAXPAYER TO SPOUSE OR SPOUSE ' S TRUSTEE  

12(1)    
This section applies if:

(a)    either:

(i) an individual (referred to in this section as the individual and the taxpayer ) is entitled to a rebate under section 160AAAA of the Act for a year of income; or

(ii) a trustee (referred to in this section as the first trustee and the taxpayer ) is entitled to a rebate under section 160AAAB of the Act for a year of income in respect of a beneficiary who is an individual (referred to in this section as the individual ); and

(b)    the base rebate amount for the rebate exceeds:

(i) if subparagraph (a)(i) of this subsection applies - the tax payable by the taxpayer in respect of income of the year; or

(ii) if subparagraph (a)(ii) of this subsection applies - the tax payable by the taxpayer in respect of the individual for the year;

(disregarding any credits or rebates); and

Note:

See subsection (5) .

(c)    a person is at any time in the year the individual ' s spouse; and

(d)    the spouse (whether or not the same person as the first trustee):

(i) is entitled to a rebate of tax (the spouse ' s rebate ) under section 160AAAA of the Act for the year; or

(ii) is a beneficiary in respect of whom a trustee (whether or not the same person as the individual or the first trustee) is entitled to a rebate of tax (the spouse ' s trustee ' s rebate ) under section 160AAAB of the Act for the year; and

(e)    the amount of the spouse ' s rebate, or the spouse ' s trustee ' s rebate, is less than the base rebate amount for that rebate.

12(2)    
For the purposes of paragraph (1)(c) , spouses living separately and apart on a permanent basis are treated as not being spouses of each other.

12(3)    
For the purposes of subsection 11(2) (but not section 10 ):

(a)    the base rebate amount for the taxpayer ' s rebate is reduced by the amount of the excess mentioned in paragraph (1)(b) of this section; and

(b)    the base rebate amount for the spouse ' s rebate, or the spouse ' s trustee ' s rebate, is increased by:

(i) the amount of the excess mentioned in paragraph (1)(b) of this section; or

(ii) if the conditions in subsection (4) of this section are met - the greater of the amount worked out using the following formula and nil:

Note:

Changing the base rebate amount may also change the rebate threshold: see subsections 9(4) to (7) .

12(4)    
For the purposes of subparagraph (3)(b)(ii) , the conditions are:

(a)    that the following is greater than $ 6,000:

(i) if subparagraph (1)(a)(i) applies - the taxpayer ' s taxable income for the year;

(ii) if subparagraph (1)(a)(ii) applies - the taxpayer ' s taxable income in relation to the individual for the year; and

(b)    that each rate of tax payable by the taxpayer is a rate set out in Part I of Schedule 7 to the Income Tax Rates Act 1986 .

Certain pensions treated as assessable income

12(5)    
For the purposes of this section, the amount of the taxpayer ' s assessable income of the year is to be calculated as if a pension the taxpayer receives at any time in the year were assessable income, if:

(a)    the taxpayer receives the pension under:

(i) Part 2.3 or 2.5 of the Social Security Act 1991 ; or

(ii) Division 4 or 5 of Part III of the Veterans ' Entitlements Act 1986 ; and

(b)    the pension payments are exempt payments under Subdivision 52-A or 52-B of the Income Tax Assessment Act 1997 .