| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your private ruling
Authorisation Number: 1012172238918
This edited version of your ruling will be published in the public register of private binding rulings after 28 days from the issue date of the ruling. The attached private rulings fact sheet has more information.
Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.
Ruling
Subject: Medicare levy surcharge
Question and answer
Question:
Are you entitled to the Family Surcharge threshold?
Answer:
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
The scheme commenced on:
1 July 2011
Relevant facts and circumstances
You are not married.
You have 1 child.
Your child does not reside with you.
You do not have private health insurance.
You pay child support for your child.
Relevant legislative provisions:
Income Tax Assessment Act 1936 section 251U
Income Tax Assessment Act 1936 section 251R
Medicare Levy Act 1986 section 8C
Medicare Levy Act 1986 section 3
Reasons for decision
An unmarried person that has one or more dependants is liable to pay an increase in the Medicare levy of 1 per cent on their taxable income and reportable fringe benefits under section 8C of the Medicare Levy Act 1986 (MLA) if they are not a 'prescribed person' as defined in section 251U of the ITAA 1936, they do not have an insurance policy providing 'private patient hospital cover' and their taxable income exceeds the amount calculated in accordance with the formula for the 'family surcharge threshold' contained in section 3A of the MLA 1986.
Subsection 251R(3) of the Income Tax Assessment Act 1936 (ITAA 1936) provides that a taxpayer will be taken to have a dependant if, during any part of the year of income:
· the person was a resident of Australia;
· the person was either a:
· spouse of the taxpayer;
· a child of the taxpayer less than 16 years of age; or
· a child of the taxpayer not less than 16 years of age but less than 25 years of age and receiving full-time education at a school, college or university; and
· the taxpayer contributed to the maintenance of the person
In your case you are not married, are not covered by private patient hospital cover and are not a prescribed person. You contributed to the maintenance of your child by making child support payments and consequently has 'dependants' as defined in subsection 251R(3) of the ITAA 1936. You are therefore entitled to use the 'family surcharge threshold' in calculating any increase in the Medicare levy payable under section 8C of the MLA 1986.
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
