Tax Laws Amendment (2011 Measures No. 4) Act 2011 (43 of 2011)

Schedule 2   Low-income taxpayer rebate

Income Tax Assessment Act 1936

3   At the end of section 159N

Add:

No rebate in respect of income of certain children

(3) Subsections (4) and (5) apply if the taxpayer is a prescribed person in relation to the year of income for the purpose of Division 6AA of Part III.

(4) Do not apply the rebate against the part (if any) of the taxpayer’s basic income tax liability that is attributable to the taxpayer’s eligible taxable income for the year of income.

(5) If the taxpayer is entitled to the tax offset mentioned in item 15 of the table in subsection 63-10(1) of the Income Tax Assessment Act 1997 (tax offset in respect of certain pensions) for the year of income, treat that tax offset as being applied, to the extent possible, against the part of the taxpayer’s basic income tax liability mentioned in subsection (4) of this section.