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ATO Interpretative Decision

ATO ID 2001/183

Income Tax

Self-funded retirees supplementary bonus - receipt of disqualifying payment - taxpayer between 55 and age pension age.
FOI status: may be released

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  • This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

This ATOID provides you with the following level of protection:

If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.

Issue

Does a taxpayer, who received a disqualifying payment from Centrelink during the 1999-2000 income year, qualify under subsection 41(3) of the A New Tax System (Bonuses for Older Australians) Act 1999 (BOA Act) for the 'self-funded retirees supplementary bonus component' of the savings bonus for older Australians (SBOA)?

Decision

No. A taxpayer does not qualify under subsection 41(3) of the BOA Act for the 'self-funded retirees supplementary bonus component' of the SBOA where they received a disqualifying payment during the 1999-2000 income year.

Facts

The taxpayer received income support payments from Centrelink in respect of the 1999-2000 income year. The taxpayer is aged between 55 and age pension age.

History note:
The sentence "The taxpayer is aged between 55 and age pension age." has been added to the above paragraph

Reasons For Decision

To qualify for the 'self-funded retirees supplementary bonus component' of the SBOA a taxpayer must satisfy, among other matters, certain age, residency and income conditions set out in subsection 41(3) of the BOA Act.

Under paragraph 41(3)(e), a taxpayer will not qualify for the bonus component if he or she at any time during the 1999-2000 income year received a disqualifying payment

A disqualifying payment is defined in section 34 of the BOA Act and includes social security pensions and benefits, service pensions and income support supplements. The taxpayer's income support payments from Centrelink are disqualifying payments.

As the taxpayer received a disqualifying payment during the 1999-2000 income year he or she does not qualify for the 'self-funded retirees supplementary bonus component' of the SBOA.

Date of decision:  10 July 2001

Year of income:  30 June 2000

Legislative References:
A New Tax System (Bonuses for Older Australians) Act 1999
   section 34
   subsection 41(3)
   paragraph 41(3)(e)

Keywords
Bonuses for older Australians
Disqualifying Payments

Business Line:  Small Business/Individual Taxpayers

Date of publication:  10 August 2001

ISSN: 1445-2782

history
  Date: Version:
You are here 10 July 2001 Original statement
  26 August 2005 Archived

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