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Edited version of private advice
Authorisation Number: 1051875325675
Date of advice: 29 July 2021
Ruling
Subject: Excepted person
Question 1
Is person A an excepted person for the purposes of paragraph 102AC(2)(d) of the Income Tax Assessment Act 1936 (ITAA 1936)?
Answer
Yes.
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.
You have supplied a medical certificate from a medical practitioner certifying that person A, a child under 18 years, is suffering a permanent disability within the meaning of Part 2.19 of the Social Security Act 1991. Accordingly, the Commissioner is satisfied that person A is an excepted person under subsection 102AC(2)(d) of the ITAA 1936.
This ruling applies for the following periods:
Year ending 30 June 2022
Year ending 30 June 2023
Year ending 30 June 2024
Year ending 30 June 2025
Year ending 30 June 2026
Year ending 30 June 2027
Year ending 30 June 2028
Year ending 30 June 2029
Year ending 30 June 2030
Year ending 30 June 2031
Year ending 30 June 2032
Year ending 30 June 2033
Year ending 30 June 2034
Year ending 30 June 2035
The scheme commences on:
1 July 2021
Relevant facts and circumstances
Person A is under 18 years old.
Person A is an eligible beneficiary as per the Trust Deed, as they are the child of the primary beneficiary for discretionary XYZ family unit trust.
The family trust will make distributions to person A.
The income derived from the family trust is not personal services income.
Person A is registered with the NDIS.
You have provided a medical certificate from a qualified medical practitioner, certifying that Person A has a disability.
The disability is a recognised Disabilities as outlined in Schedule 3 of the 'List of Recognised Disabilities" of the Disability Care Load Assessment (Child) Determination 2010 made under section 38E of the Social Security Act 1991.
Relevant legislative provisions
Income Tax Assessment Act 1936 paragraph 102AC(2)(d)