ATO Interpretative Decision

ATO ID 2002/421 (Withdrawn)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

Is a taxpayer who is below 'pension age' and not in receipt of an entitlement under the Veterans Entitlement Act 1986 entitled to a low income aged person tax rebate under section 160AAAA of the Income Tax Assessment Act 1936 (ITAA 1936)?

Decision

No. A taxpayer who is below 'pension age' and not in receipt of an entitlement under the Veterans Entitlement Act 1986 is not entitled to a low income aged person tax rebate under section 160AAAA of the ITAA 1936.

Facts

The taxpayer has been a resident of Australia for 10 years.

In the tax return of the 2001 income year, the taxpayer:

•

returned income from investments; and

•

claimed dividend and interest deductions.

The taxpayer was under 'pension age' for the entire year.

The taxpayer's taxable income is below the taxable income threshold in the 2001 income year for aged persons.

Reasons for Decision

To qualify for a low income aged rebate (or SATO) under section 160AAAA of the ITAA 1936, a taxpayer must satisfy all the following conditions:

(i)

for at least one day during the year they must have been of 'pension age' and

•

be in receipt of an entitlement under the Veterans Entitlement Act 1986 (excluding beneficiaries of the Veteran's Children Education Scheme); or

•

have more then 10 years 'qualifying Australian residence'; and

(ii)

they have not been in goal for the entire income year; and

(iii)

have a taxable income below the tax free threshold for aged persons

As the taxpayer fails to satisfy the condition with regard to 'pension age' they are not entitled to a tax rebate for low income aged persons under section 160AAAA of the ITAA 1936, notwithstanding that all the other conditions may be met.

Note: For 2000-01:

•

the income tax threshold for a single taxpayer is $20,000

•

'pension age' is 65 years or over for a male and 61.5 years for a female

For beneficiaries of the Veterans Entitlement Act 1986, a Senior Australian is 60 years or more for a male and 56.5 years or more for a female in receipt of a service pension or a war widow pension or widower receiving an income support supplement.

Year of income:  Year ended 30 June 2000 Year ended 30 June 2001

Legislative References:
Income Tax Assessment Act 1936
   section 160AAAA

Other References:
NAT975-6.2001

Keywords
Tax free threshold
Low income aged persons rebate

Business Line:  Small Business/Individual Taxpayers

Date of publication:  12 April 2002

ISSN: 1445-2782