ATO Interpretative Decision

ATO ID 2001/240 (Withdrawn)

Income Tax

Self-funded retirees supplementary bonus - no adjusted savings and investment income - taxpayer aged between 55 and age pension age
FOI status: may be released

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.

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.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 a taxpayer, who does not have any adjusted savings and investment income, 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)?

Decision

No. A taxpayer who does not have any adjusted savings and investment income does not qualify under subsection 41(3) of the BOA Act for the 'self-funded retirees supplementary bonus component' of the SBOA.

Facts

The taxpayer is aged between 55 and age pension age.

The taxpayer does not have any adjusted savings and investment income.

The taxpayer's savings and investment expenses exceed his or her savings and investment income.

Reasons For Decision

The taxpayer's eligibility for the 'self-funded retirees supplementary bonus component' of the SBOA is determined under subsection 41(3) of the BOA Act.

Paragraph 41(3)(c) requires the taxpayer to have adjusted savings and investment income in the 1998-1999 or 1999-2000 income year (or both).

Adjusted savings and investment income is defined in section 35 of the BOA Act. That section provides that adjusted savings and investment income is generally the total of savings and investment income and other non salary and wage earnings, less any deductions that relate to that income.

As the taxpayer's savings and investment expenses exceed their savings and investment income, the taxpayer does not have any 'adjusted savings and investment income' and so does not qualify for the 'self-funded retirees supplementary bonus component' of the SBOA.

Date of decision: 7 August 2001

Year of income: Year ended 30 June 1999, year ended 30 June 2000

Legislative References:
A New Tax System (Bonuses for Older Australians) Act 1999
   section 35
   41(3)
   paragraph 41(3)(c)

Keywords
Bonuses for older Australians
Adjusted savings and investment income

Business Line: Small Business/Individual Taxpayers

Date of publication: 21 August 2001

ISSN: 1445-2782

history

	Date:	Version:
	7 August 2001	Original statement
You are here	26 August 2005	Archived

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