ATO Interpretative Decision
ATO ID 2001/620 (Withdrawn)
Income Tax
Savings Tax Offset - eligibilityFOI status: may be released
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This ATO ID is a straight application of the law and does not contain an interpretative decision.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 the taxpayer entitled to a Savings Tax Offset (STO) under Subdivision 61-A of the Income Tax Assessment Act 1997 (ITAA 1997) for the 1998-1999 income year?
Decision
Yes, the taxpayer is entitled to a STO under Subdivision 61-A of the ITAA 1997 for the 1998-1999 income year.
Facts
The taxpayer is a resident of Australia for tax purposes.
For the 1998-1999 income year, the sum of the taxpayer's:
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- savings and investment income less deductions relating to that income; and
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- personal superannuation contributions to a complying superannuation fund or a Retirement Saving Account (RSA) less contributions which were deductible under section 82AAT of the Income Tax Assessment Act 1936 (ITAA 1936)
exceeded $3000.
Reasons for Decision
The taxpayer's eligibility for a STO is determined under Subdivision 61-A of the ITAA 1997.
Subsection 61-55(1) of the ITAA 1997 provides that a taxpayer will be entitled to a STO if they are:
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- an individual; and
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- an Australian resident at any time during the income year.
The amount of STO available is calculated in accordance with subsection 61-55(2). Under that subsection, for the 1998-1999 income year, the amount of the STO was 7.5% of:
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- the taxpayer's savings and investment income for the income year, plus the sum of any contributions to a complying superannuation fund or a RSA made during the year;
Less
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- the sum of any deductions for the income year, to the extent that they related to any or all of the taxpayer's savings and investment income, and any amount that the taxpayer could deduct under section 82AAT of the ITAA 1936
up to a maximum offset amount of $225.
Savings and investment income is defined in section 61-60 of the ITAA 1997. That section provides that savings and investment income is generally the total of all non salary and wage income.
The taxpayer satisfies the tests set out in subsection 61-55(1) and so is eligible for a STO. In addition, after applying the above formula to the taxpayer's circumstances, the taxpayer is entitled to the maximum STO of $225.
The STO provisions have been repealed and only apply to the 1998-1999 income year.
Date of decision: 27 July 2001
Legislative References:
Income Tax Assessment Act 1997
subdivision 61-A
subsection 61-55(1)
subsection 61-55(2)
section 61-60
section 82AAT
Keywords
Savings Offset
ISSN: 1445-2782
| Date: | Version: | |
| 27 July 2001 | Original statement | |
| You are here | 26 August 2005 | Archived |