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Edited version of your written advice
Authorisation Number: 1051200965483
Date of advice: 16 March 2017
Ruling
Subject: Excepted person status
Question
Are the distributions made to an excepted person for the purposes of paragraph 102AC(2)(d) of the Income Tax Assessment Act 1936 (ITAA 1936)?
Answer
Yes
This ruling applies for the following periods:
Year ended 30 June 2016
Year ended 30 June 2017
Year ended 30 June 2018
The scheme commenced on:
1 July 2015
Relevant facts:
Your date of birth has been provided.
You have provided medical certification from a qualified medical practitioner certifying that the person has a disability and is likely to need care and attention either permanently or for an extended period and that you meet the meaning of 'disabled child' under the Social Security Act 1991.
Relevant Legislation:
Income Tax Assessment Act 1936 paragraph 102AC(2)(d)
Reasons for decision
Summary
The person is an excepted person for the purposes of Subsection 102AC(2d) of the Income Tax Assessment Act 1936 (ITAA 1936)
Detailed Reasoning
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 paragraph 102AC(2)(d) of the ITAA 1936 when the Commissioner has received a certificate issued by a qualified medical practitioner certifying that the minor is a disabled child within the meaning of Part 2.19 of the Social Security Act 1991 on the last day of the income year.
A disabled child within the meaning of the Social Security Act 1991 is defined as a person aged under 16 who has a physical, intellectual or psychiatric disability and is likely to suffer from that disability permanently or for an extended period of time.
In your circumstances
You have supplied medical certification from a qualified medical practitioner certifying that the person is a child under 16 years who is suffering a disability permanently or for an extended period of time. The Commissioner is satisfied that they are an excepted person under the paragraph 102AC(2)(d) of the ITAA 1936.