ATO Interpretative Decision

ATO ID 2001/488 (Withdrawn)

Income Tax

• 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.

Issue

Does the taxpayer qualify under subsection 41(2) 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

Yes, the taxpayer qualifies under subsection 41(2) of the BOA Act for the 'self-funded retirees supplementary bonus component' of the SBOA.

Facts

The taxpayer was of age pension age and an Australian resident on 1 July 2000. For the 1999-2000 income year:

•

the taxpayer's taxable income was less than $30 000

•

the taxpayer had adjusted savings and investment income of more than $1000.

The taxpayer did not receive a disqualifying payment at any time during or in respect of the period commencing 1 April 2000 and ending 30 June 2000.

Applying the taxpayer's taxable income to the formula contained in subsection 45(5) of the BOA Act, the amount of the 'self-funded retirees supplementary bonus component' of the SBOA is calculated to be greater than nil.

Reasons for Decision

The taxpayer's eligibility for the 'self-funded retirees supplementary bonus component' of the SBOA is determined under subsection 41(2) of the BOA Act. A taxpayer will qualify for the bonus provided the following tests are met:

(a)

on 1 July 2000, he is aged 65 or more or she is aged 61.5 or more; and

(b)

he or she is an Australian resident on 1 July 2000; and

(c)

his or her taxable income as shown in his or her assessment for the qualifying year, or for either or each of the qualifying years, is less than $30 000, and he or she has adjusted savings and investment income of more than $1000, for that year or those years; and

(d)

at least one of the following applies:

(i)

he or she did not receive a disqualifying payment at any time during the period from the start of 1 April 2000 until the end of 30 June 2000;

(ii)

he or she received a disqualifying payment during the period from the start of 1 April 2000 until the end of 29 June 2000, his or her partner died during that period and he or she is not receiving a disqualifying payment on 30 June 2000;

(iii)

he or she received a disqualifying payment during the period from the start of 1 April 2000 until the end of 30 June 2000 in a circumstance prescribed by the regulations for the purposes of this subparagraph; and

(e)

the amount of the self-funded retirees supplementary bonus component, worked out under subsection 45(5), is greater than nil.

The taxpayer satisfies the above tests and therefore qualifies for the 'self-funded retirees supplementary bonus component' of the SBOA.

Legislative References:
A New Tax System (Bonuses for Older Australians) Act 1999
   section 35
   subsection 41(2)
   paragraph 41(2)(c)
   subsection 45(5)

Keywords
Individual taxpayers
Bonuses for older Australians
Adjusted savings and investment income

Business Line:  Small Business/Individual Taxpayers

Date of publication:  19 October 2001

ISSN: 1445-2782