| Disclaimer This edited version has been archived due to the length of time since original publication.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 written advice
Authorisation Number: 1013110892793
Date of advice: 19 October 2016
Ruling
Subject: Trust - beneficiary - excepted person
Question
Were you an excepted person for the purposes of Subsection 102AC of the Income Tax Assessment Act 1936 (ITAA 1936)?
Answer
Yes
This ruling applies for the following period
Year ended 30 June 20XY
The scheme commences on
1 July 20XX
Relevant facts and circumstances
You are a minor.
A person received a Carer Allowance from X for the care they provided for you during the 20XX-XY financial year.
Relevant legislative provisions
Income Tax Assessment Act 1936 Subsection 102AC(2)
Reasons for decision
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 to include a minor in respect of whom a carer allowance under the Social Security Act 1991 was payable in respect of a period that included the last day of the year of income. A minor is a person less than 18 years of age on the last day of the year of income.
You are a minor and a person was paid a Carer Allowance for the care they provided to you for a period which included 30 June 20XY. Therefore you are considered to be an 'excepted person' for the purposes of subsection 102AC(2) of the ITAA 1936.