ATO Interpretative Decision
ATO ID 2002/585 (Withdrawn)
Income Tax
Self-Funded Retirees Supplementary Bonus - Business Income in excess of $1000FOI 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.
Status of this decision: Decision Withdrawn 26 August 2005
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 the taxpayer 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), where their business income is greater than $1000?
Decision
No. The taxpayer does not qualify under subsection 41(3) of the BOA Act for the self-funded retirees supplementary bonus component of the SBOA as their business income is greater than $1000.
Facts
The taxpayer was an Australian resident on 1 July 2000.
The taxpayer was aged between 55 and age pension age on 1 July 2000.
The taxpayer was self employed in the 2000 income year and had a net business income (that is, business income received less deductions directly related to that income) in excess of $1000.
The taxable income of the taxpayer in the 2000 income year was less than $30 000.
Reasons for Decision
To qualify for the 'self-funded retirees supplementary bonus' component of the SBOA, the taxpayer must satisfy certain age, residency and income conditions set out in subsection 41(3) of the BOA Act.
Paragraph 41(3)(d) of the BOA Act states a taxpayer will not qualify for the bonus component if their adjusted business and wages income for the 2000 income year exceeds $1000.
An individual's 'business and wages income' is the sum of the following:
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- all of the individuals assessable income that is PAYE earnings; and
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- all of the individuals assessable income (other than PAYE earnings) derived from a business carried on by an individual.
Adjusted business and wages income is defined in section 36 of the BOA Act as being, as far as the definition relates to these circumstances, the sum of all PAYE earnings and business income, less any deductions that relates directly to that income.
The taxpayer received in excess of $1000 adjusted business and wages income in the 2000 income year. Therefore, as a result of paragraph 41(3)(d) of the BOA Act , they are not entitled to the self-funded retirees supplementary bonus component.
Date of decision: 28 February 2002Year of income: Year ended 30 June 2000
Legislative References:
A New Tax System (Bonuses for Older Australians) Act 1999
section 36
subsection 41(3)
paragraph 41(3)(d)
Keywords
Savings Bonus for Older Australians
ISSN: 1445-2782
| Date: | Version: | |
| 28 February 2002 | Original statement | |
| You are here → | 26 August 2005 | Archived |