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Edited version of your written advice
Authorisation Number: 1013114259067
NOTICE
This edited version has been found to be misleading or incorrect. It does not represent the ATO's view of the relevant law.
This notice must not be taken to imply anything about:
• the binding nature of the private advice issued to the applicant
• the correctness of other edited versions.
Date of advice: 26 October 2016
Ruling
Subject: Small business tax offset
Question and answer
Are you eligible for the small business tax offset?
Yes.
This ruling applies for the following periods:
Year ended 30 June 2016
The scheme commenced on:
1 July 2015
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You are a resident of Australia for taxation purposes.
You are the sole beneficiary of the trust.
The Trust includes 50% of the partnerships income in its tax return. The only income derived by the Trust is small business income.
The net income of the trust is distributed to you.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 328-350.
Reasons for decision
Section 328-350 of the Income Tax Assessment Act 1997 (ITAA1997) states:
You may be entitled to a tax offset if you are an individual:
(a) Who is a small business entity; or
(b) whose assessable income includes a share of the net small business income of an unincorporated small business entity; or
(c) whose assessable income includes an amount because you are a partner in a partnership, or a beneficiary in a trust, that is a small business entity.
You are the sole beneficiary of a trust who is a small business entity.
You therefore meet the above requirements and are eligible for the small business tax offset.