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Edited version of private advice
Authorisation Number: 1051611067669
Date of advice: 25 November 2019
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 20XX
Year ending 30 June 20XX
Year ending 30 June 20XX
Year ending 30 June 20XX
Year ending 30 June 20XX
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You have provided documentation from a legally qualified medical practitioner that has indicated that you have a permanent disability
Relevant legislative provisions
Income Tax Assessment Act 1936 Subsection 102AC(1)
Income Tax Assessment Act 1936 Paragraph 102AC(2)(c)
Reasons for decision
Division 6AA of the Income Tax Assessment Act 1936 (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' for a year of income is defined in subsection 102AC(2) of the ITAA 1936 and includes a person where the Commissioner has received a certificate issued by a legally qualified medical practitioner certifying that the minor is a disabled child or adult within the meaning of Part 2.19 of the Social Security Act 1991 (subparagraph 102AC(2)(d)(i)(A) of the ITAA 1936) and the Commissioner is satisfied on the last day of the year of income, the minor was a disabled child or adult within the meaning of Part 2.19 of the Social Security Act 1991.
You are an excepted person under subsection 102AC(2)(d)(a) of the ITAA 1936 as the Commissioner has received the required documentation and is satisfied that you are a disabled child within the meaning of Part 2.19 of the Social Security Act 1991 on the last day of the year of income .
Accordingly the special rates of tax under Division 6AA of the ITAA 1936 will not apply to income derived by you.