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Edited version of private ruling
Authorisation Number: 1011790838468
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Ruling
Subject: Tax rates
Question and answer:
Are you entitled to a reduction to your individual income tax rate?
No.
This ruling applies for the following period:
1 July 2008 to 30 June 2011.
The scheme commenced on:
1 July 2008.
Relevant facts:
You have lodged income tax returns indicating you are a resident of Australia for taxation purposes.
Your spouse was cheated out of a sum of money.
The lost money cannot be recovered.
Although the lost money was withdrawn by your spouse from a jointly held account, you were not involved in any way in any of the transactions that resulted in the loss of this money.
Relevant legislative provisions:
Income Tax Rates Act 1986 Section 12(1).
Income Tax Rates Act 1986 Schedule 7, Part 1.
Taxation Administration Act 1953 Sch1-section 359-5.
Reasons for decision
The rates of tax applicable to individual taxpayers who are residents of Australia for taxation purposes are prescribed by law in Schedule 7 of the Income Tax Rates Act 1986 (ITRA 1986).
For individuals who were residents of Australia for tax purposes in the 2010 income tax year, the applicable tax rates were as follows:
Taxable income |
Tax on this income |
0 - $6,000 |
Nil |
$6,001 - $35,000 |
15c for each $1 over $6,000 |
$35,001 - $80,000 |
$4,350 plus 30c for each $1 over $35,000 |
$80,001 - $180,000 |
$17,850 plus 38c for each $1 over $80,000 |
$180,001 and over |
$55,850 plus 45c for each $1 over $180,000 |
The following rates are applicable for individuals who are residents of Australia for tax purposes in the 2011 income tax year:
Taxable income |
Tax on this income |
0 - $6,000 |
Nil |
$6,001 - $37,000 |
15c for each $1 over $6,000 |
$37,001 - $80,000 |
$4,650 plus 30c for each $1 over $37,000 |
$80,001 - $180,000 |
$17,550 plus 37c for each $1 over $80,000 |
$180,001 and over |
$54,550 plus 45c for each $1 over $180,000 |
There is no provision in the tax law for these prescribed rates of tax to be reduced for individual taxpayers. Accordingly, you are not entitled to a reduction in your individual income tax rate.