Income Tax Assessment Act 1936
Subject to subsection 160AAA(4A) , a trustee who is liable to be assessed under section 98 in respect of a beneficiary ' s share of the net income of the trust estate is entitled to a rebate of tax in the trustee ' s assessment in respect of income of a year of income of an amount (if any), ascertained in accordance with the regulations, if the conditions in subsections (2) and (3) are satisfied.
The first condition is that:
(a) on at least one day during the year of income, the beneficiary:
(i) is eligible for a pension, allowance or benefit under the Veterans ' Entitlements Act 1986 (other than Part VII); and
(ii) has reached pension age, within the meaning of that Act; and
(iii) is not in gaol; or
(b) on at least one day during the year of income, the beneficiary:
(i) is qualified for an age pension under the Social Security Act 1991 ; and
(ii) is not in gaol; or
(c) the assessable income of the beneficiary of the year of income includes an amount of:
(i) social security pension or education entry payment (within the meaning of the Social Security Act 1991 ); or
and, on at least one day during the year of income, the beneficiary is not in gaol.
(ii) service pension, carer service pension, income support supplement or Defence Force Income Support Allowance (within the meaning of the Veterans ' Entitlements Act 1986 ) or a DFISA-like payment mentioned in Division 4 of Part VIIAB of that Act;
[ CCH Note: Para 160AAAB(2)(a)(i) second occurring inserted by No 44 of 2001.]
The second condition is that the beneficiary has an amount applicable under subsection (4) or (5) for the year of income less than an amount ascertained in accordance with the regulations.
If the beneficiary is not the spouse of another person, the amount applicable to the beneficiary under subsection (3) is the amount that would be the beneficiary ' s rebate income for the year of income if the beneficiary ' s taxable income for that year were the beneficiary ' s share of the net income of the trust estate.
If the beneficiary is the spouse of another person, the amount applicable to the beneficiary under subsection (3) is half the sum of:
(a) the amount that would be applicable to the beneficiary under subsection (3) if the beneficiary were not the spouse of another person; and
(b) the beneficiary ' s spouse ' s rebate income for the year of income (reduced by any amount included in the spouse ' s assessable income under section 100 ); and
(c) an amount in respect of which a trustee of a trust estate is liable to be assessed (and pay tax) under section 98 in respect of the taxpayer ' s spouse.
Regulations made for the purposes of this section may be expressed to apply in relation to a year of income any part of which occurred before the notification of the regulations.
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