ATO Interpretative Decision

ATO ID 2001/223 (Withdrawn)

Income Tax

Senior Australians Tax Offset - residency test - resident for less than 10 years
FOI status: may be released
CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

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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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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, who has been a resident of Australia for social security (Centrelink) purposes for less than 10 years, eligible for a Senior Australian Tax Offset (SATO) under section 160AAAA of the Income Tax Assessment Act 1936 (ITAA 1936)?

Decision

No, the taxpayer, who has been a resident of Australia for social security (Centrelink) purposes for less than 10 years, is not eligible for a SATO under section 160AAAA of the ITAA 1936.

Facts

The taxpayer has been an Australian resident for social security (Centrelink) purposes for less than 10 years.

The taxpayer does not have qualifying Australian residence, and does not have a qualifying residence exemption.

Reasons for Decision

To qualify for a SATO a taxpayer must satisfy certain age, residency and income conditions set out in section 160AAAA of the ITAA 1936. The residency condition, contained in subsection 160AAAA(2), requires that the taxpayer be an Australian resident for age pension purposes (generally, has been a resident of Australia for social security purposes for 10 years).

If the taxpayer has been an Australian resident for less than 10 years they may still be considered to have been a resident for age pension purposes, within the meaning of the Social Security Act 1991, if they have qualifying Australian residence (for example, if they are covered by a Social Security International Agreement) or have a qualifying residence exemption for an age pension (for example, if they qualify as a refugee).

The taxpayer has been a resident of Australia for social security purposes for less than 10 years, and has neither qualifying Australian residence nor a qualifying residence exemption for an age pension. The taxpayer therefore does not satisfy the residency condition and so will not be entitled to a SATO.

Date of decision:  25 July 2001

Legislative References:
Social Security Act 1991
   The Act

Income Tax Assessment Act 1936
   160AAAA

Keywords
Rebates
Tax Free Threshold

Business Line:  Small Business/Individual Taxpayers

Date of publication:  21 August 2001

ISSN: 1445-2782

history
  Date: Version:
  25 July 2001 Original statement
You are here 26 August 2005 Archived

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