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ATO Interpretative Decision

ATO ID 2001/241

Income Tax

Aged persons savings bonus - amount of bonus entitlement
FOI status: may be released

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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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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

Is a taxpayer entitled under section 45 of the A New Tax System (Bonuses for Older Australians) Act 1999 (BOA Act) for an 'aged persons savings bonuses component' of the savings bonus for older Australians (SBOA) in excess of their adjusted savings and investment income?

Decision

No, a taxpayer is not entitled under section 45 of the BOA Act for an 'aged persons savings bonuses component' of the SBOA in excess of their adjusted savings and investment income.

Facts

The taxpayer satisfies the age, residency and income conditions under subsection 41(1) of the BOA Act.

Reasons for Decision

To qualify for the 'aged persons savings bonus component' of the SBOA a taxpayer must satisfy certain age, residency and income conditions set out in subsection 41(1) of the BOA Act. If a taxpayer is qualified for the bonus component, the amount of bonus they are entitled to is calculated under the provisions of section 45 of the BOA Act.

The taxpayer satisfies the relevant conditions contained in subsection 41(1) of the BOA Act and therefore qualifies for the 'aged persons savings bonus component' of the SBOA.

Subsection 45(4) provides that the amount of the bonus payment cannot exceed:

•
$1000, or
•
the amount of the taxpayer's adjusted savings and investment income. A taxpayer's actual entitlement depends upon their taxable income and reduces from the above limits when that income exceeds $20 000.

A taxpayer's actual entitlement depends upon their taxable income and reduces from the above limits when that income exceeds $20,000.

Date of decision:  7 August 2001

Legislative References:
A New Tax System (Bonuses for Older Australians) Act 1999
   subsection 41(1)
   section 45
   subsection 45(4)

Keywords
Bonuses for older Australians
Adjusted savings and investment income

Business Line:  Small Business/Individual Taxpayers

Date of publication:  21 August 2001

ISSN: 1445-2782

history
  Date: Version:
You are here 7 August 2001 Original statement
  26 August 2005 Archived

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