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Edited version of private advice
Authorisation Number: 1052339458414
Date of advice: 13 December 2024
Ruling
Subject: Excepted person - minor
Question
Are you 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 period:
Year ended 30 June 20XX
The scheme commenced on:
XX XX 20XX
Relevant facts and circumstances
Your date of birth is XX XX 20XX.
On XX XX 20XX you were diagnosed with a medical condition.
You provided a medical certificate from a qualified general practitioner, dated XX XX 20XX stating your diagnosis and describing your condition as permanent.
Your condition is a recognised disability according to Social Policy Law.
You meet the definition of a 'disabled child' under the Social Security Act 1991.
Your carers will not receive a carer allowance due to exceeding the income threshold for the 20XX financial year.
Your carers are unlikely to be eligible for the carers allowance in future financial years due to exceeding the income threshold.
During the ruling period you will receive trust distributions from a discretionary family trust.
The distributions will be based on estimated costs for your medical and educational needs for the prospective year.
Relevant legislative provisions
Income Tax Assessment Act 1936 section 102AC
Reasons for decision
An 'excepted person' is defined in subsection 102AC(2) of the ITAA 1936 which lists several ways a minor can be an 'excepted person'.
Under paragraph 102AC(2)(d) of the ITAA 1936, a minor will be an 'excepted person' in relation to a year of income if the Commissioner:
• has received a certificate issued by a legally qualified medical practitioner certifying that the minor is:
a disabled child, or a disabled adult, within the meaning of Part 2.19 of the Social Security Act 1991 or
a person who has a continuing inability to work within the meaning of Part 2.3 of the Social Security Act 1991 or is permanently blind and
• is satisfied that, on the last day of the year of income, the minor was a person of the kind mentioned in the paragraph above.
'Disabled child' is defined in Part 2.19 of the Social Security Act 1991 (SSA 1991) 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.
You have supplied a medical certificate from a qualified medical practitioner certifying that you are a child under 16 years and suffer from a permanent medical condition.
You therefore meet the definition of a 'disabled child' under the SSA 1991.
The Commissioner is satisfied that you are an excepted person under subsection 102AC(2) of the ITAA 1936.