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Draft Taxation Determination

TD 94/D90

Income tax: rebates for dependants: do losses of previous years reduce the separate net income of a dependant for the purposes of calculating a rebate under the provisions of section 159J of the Income Tax Assessment Act 1936?

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FOI status:

draft only - for comment

Preamble

Draft Taxation Determinations (TDs) represent the preliminary, though considered, views of the ATO. Draft TDs may not be relied on; only final TDs are authoritative statements of the ATO.

1. No. Rebates for dependants are reduced by $1 for every $4 by which the separate net income derived by the dependant in the year of income exceeds $282 (subsection 159J(4)).

2. Losses from previous years do not reduce separate net income. This view is supported by the decision of the Taxation Board of Review in Case N49 81 ATC 243; 25 CTBR (NS) Case 3 which, when considering a claim for a dependant spouse rebate, disregarded losses of previous years in the calculation of separate net income. The Board referred to the phrase 'year of income' in subsection 159J(4) and limited the computation of separate net income to 'the year of income in issue'.

Commissioner of Taxation
18 August 1994

This Draft Determination has been withdrawn from 1/12/94

References

ATO references:
NO T95 Pt4

ISSN 1038 - 8982

Related Rulings/Determinations:

CITCM 408
CITCM 635

Subject References:
separate net income
losses of previous years
dependants
concessional rebates
medicare levy
zone rebates

Legislative References:
ITAA 159J
ITAA 159J(4)

Case References:
Case N 49 / Case 3
81 ATC 243
25 CTBR (NS) 11


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