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Edited version of private ruling

Authorisation Number: 1011559824980

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Ruling

Subject: Excepted person

Are you an excepted person for the purposes of Division 6AA of the Income Tax Assessment Act 1936 (ITAA 1936)?

Yes.

This ruling applies for the following periods

Year ending 30 June 2012

Year ending 30 June 2013

Year ending 30 June 2014

Year ending 30 June 2015

Year ending 30 June 2016

The scheme commenced on

1 July 2011

Relevant facts

You have been medically certified to have a medical condition.

You are permanently disabled.

A Carers Allowance is received on your behalf under the Social Security Act 1991.

You are under 18 years of age.

Reasons for decision

Division 6AA of the ITAA 1936 ensures that special rates of tax and a lower tax free threshold apply in working out the basic income tax liability on taxable income, other than excepted income, derived by a prescribed person.

A 'prescribed person' is defined in subsection 102AC(1) of the ITAA 1936 to include any person, other than an excepted person (as defined in subsection 102AC(2) of the ITAA 1936), under 18 years of age at the end of the income year.

An 'excepted person' is defined in subsection 102AC(2) of the ITAA 1936 and includes a person in respect of whom the Commissioner has received a certificate issued by a legally qualified medical practitioner certifying that they are a disabled child, or a disabled adult, within the meaning of Part 2.19 of the Social Security Act 1991 (SSA 1991) (sub subparagraph 102AC(2)(d)(i)(A) of the ITAA 1936).

A person is a 'disabled child' within the meaning of Part 2.19 of the SSA 1991 (section 952 of the SSA 1991) if:

In your case, you been medically certified to have a medical condition and are considered to be permanently disabled. As you meet each of the above requirements you are considered to be a disabled child within the meaning of Part 2.19 of the SSA 1991 (Carer Allowance).

You are therefore an excepted person under subsection 102AC(2) of the ITAA 1936. Accordingly, the special rates of tax under Division 6AA of the ITAA 1936 will not apply to income derived by you.

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