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Edited version of your written advice
Authorisation Number: 1013022632869
Date of advice: 23 May 2016
Ruling
Subject: Excepted person status
Question
Are you an excepted person for the purposes of Subsection 102AC(2d) of the Income Tax Assessment Act 1936 (ITAA 1936)?
Answer
Yes
This ruling applies for the following periods:
Year ended 30 June 2016
Year ended 30 June 2017
The scheme commenced on:
1 July 2015
Relevant facts:
You are under 16 years of age.
You have provided a medical certificate from a qualified medical practitioner certifying that you have a disability and that you are likely to need care and attention either permanently or for an extended period and that you meet the meaning of 'disabled child' under the Social Security Act 1991.
Relevant Legislation:
Income Tax Assessment Act 1936 Subsection 102AC(2)
Reasons for decision
Summary
You are an excepted person for the purposes of Subsection 102AC(2d) of the Income Tax Assessment Act 1936 (ITAA 1936)
Detailed Reasoning
Division 6AA of the ITAA 1936 imposes a higher rate of tax on 'eligible taxable income' derived by a person who is less than 18 years of age at the end of the year of income if they are not an 'excepted person'.
An 'excepted person' is defined in subsection 102AC(2) of the ITAA 1936 when the Commissioner has received a certificate issued by a qualified medical practitioner certifying that the minor is a disabled child within the meaning of Part 2.19 of the Social Security Act 1991 on the last day of the income year.
A disabled child within the meaning of the Social Security Act 1991 is defined as a person aged under 16 who has a physical, intellectual or psychiatric disability and is likely to suffer from that disability permanently or for an extended period of time.
In your circumstances
You have supplied a medical certificate from a qualified medical practitioner certifying that you are a child under 16 years who is suffering a disability permanently or for an extended period of time. The Commissioner is satisfied that you are an excepted person under the subsection 102AC(2) of the ITAA 1936.
Additional Information:
Further issues for you to consider:
(List any related issues that the client should consider that may have an impact on the ruling)
ATO view documents
Straight application of the law
Does Part IVA or any other anti-avoidance provision apply to this ruling?
N/A
Technical Assurance
This private binding ruling has been completed in accordance with the corporate procedures supporting legal reasoning and good decision making.
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