| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your private ruling
Authorisation Number: 1012581670044
Ruling
Subject: Excepted person
Question
Are you an excepted person for the purposes of Division 6AA of the Income Tax Assessment Act 1936 (ITAA 1936)?
Answer
Yes.
This ruling applies for the following periods
Year ending 30 June 2013
Year ending 30 June 2014
Year ending 30 June 2015
Year ending 30 June 2016
Year ending 30 June 2017
The scheme commenced on
1 July 2012
Relevant facts
You are under 18 years of age.
You have provided a medical certificate from a legally qualified medical practitioner, stating that you meet the definition of a disabled child.
The certificate states that you have a handicap and require care and attention from another person on a daily basis.
Relevant legislative provisions
Income Tax Assessment Act 1936 Subsection 102AC(1)
Income Tax Assessment Act 1936 Paragraph 102AC(2)(d)
Reasons for decision
Division 6AA of the ITAA 1936 ensures that special rates of tax and a lower tax free threshold apply in working out the basic income tax liability on taxable income, other than excepted income, derived by a prescribed person.
A 'prescribed person' is defined in subsection 102AC(1) of the ITAA 1936 to include any person, other than an excepted person (as defined in subsection 102AC(2) of the ITAA 1936), under 18 years of age at the end of the income year.
An 'excepted person' is defined in subsection 102AC(2) of the ITAA 1936 and includes a person in respect of whom the Commissioner has received a certificate issued by a legally qualified medical practitioner certifying that they are a disabled child, or a disabled adult, within the meaning of Part 2.19 of the Social Security Act 1991 (sub subparagraph 102AC(2)(d)(i)(A) of the ITAA 1936).
A person is a 'disabled child' within the meaning of Part 2.19 of the SSA 1991 (section 952 of the SSA 1991) if:
· they have a physical, intellectual or psychiatric disability;
· they need care and attention from another person on a daily basis to an extent substantially greater than that needed by a person of the same age who does not have such a disability; and
· the person is likely to need that care and attention permanently or for an extended period.
In your case, you have been medically certified by a legally qualified medical practitioner, as meeting the definition of a disabled child. As you meet each of the above requirements you are considered to be a disabled child within the meaning of Part 2.19 of the SSA 1991.
You are therefore an excepted person under subsection 102AC(2) of the ITAA 1936. Accordingly the special rates of tax under Division 6AA of the ITAA 1936 will not apply to income derived by you.