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Edited version of your written advice
Authorisation Number: 1051351887030
Date of advice: 20 March 2018
Ruling
Subject: Excepted person status
Question
Are you an excepted person for the purposes of subsection 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 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You are under 16 years of age.
You have provided a medical certificate from a qualified medical practitioner certifying that you have a disability and that you are 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 legislative provisions
Income Tax Assessment Act 1936 subsection 102AC(2)(d)
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. A person is an ‘excepted person’ 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, and when the Commissioner is satisfied the minor was person of that kind 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 years who has a physical, intellectual or psychiatric disability and is likely to suffer from that disability permanently or for an extended period of time.
Detailed Reasoning
You have supplied a medical certificate from a qualified medical practitioner certifying that you are a child under 16 years who is suffering a disability permanently or for an extended period of time. The Commissioner is satisfied that you are an excepted person under subsection 102AC(2) of the ITAA 1936.