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Edited version of your private ruling

Authorisation Number: 1012342021196

Ruling

Subject: Medicare levy

Question

Are you entitled to include foster children as dependants for the purpose of the Medicare levy?

Answer

No.

This ruling applies for the following period

Year ended 30 June 2011

The scheme commenced on

1 July 2010

Relevant facts

You and your spouse foster children.

Relevant legislative provisions

Income Tax Assessment Act 1936 Section 251R

Income Tax Assessment Act 1997 Subsection 995-1(1)

Reasons for decision

Section 251R of the Income Tax Assessment Act 1936 provides the definition of a dependant for Medicare levy purposes. In that definition a child is a child of the taxpayer.

Subsection 995-1(1) of the Income Tax Assessment Act 1997 defines child of a person as including the person's adopted child, step-child or ex-nuptial child.

A fostered child is not included in this definition and therefore does not qualify as a dependant for Medicare levy purposes.


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