Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1936 - SECT 160AAAB

             (1)  A taxpayer who is a trustee who is liable to be assessed under section 98 in respect of a beneficiary's share of the net income of the trust estate is entitled to a rebate of tax in the trustee's assessment in respect of income of a year of income of an amount (if any), ascertained in accordance with the regulations, if the conditions in subsections (2) and (3) are satisfied.

             (2)  The first condition is that, on at least one day during the year of income, either:

                     (a)  the beneficiary:

                              (i)  is eligible for a pension, allowance or benefit under the Veterans' Entitlements Act 1986 (other than Part VII); and

                             (ii)  has reached pension age, within the meaning of that Act; and

                            (iii)  is not in gaol; or

                     (b)  the beneficiary:

                              (i)  is qualified for an age pension under the Social Security Act 1991 ; and

                             (ii)  is not in gaol.

             (3)  The second condition is that the beneficiary has an amount applicable under subsection (4) or (5) for the year of income less than an amount ascertained in accordance with the regulations.

             (4)  If the beneficiary is not the spouse of another person, the amount applicable to the beneficiary under subsection (3) is the amount that would be the beneficiary's rebate income for the year of income if the beneficiary's taxable income for that year were the beneficiary's share of the net income of the trust estate.

             (5)  If the beneficiary is the spouse of another person, the amount applicable to the beneficiary under subsection (3) is half the sum of:

                     (a)  the amount that would be applicable to the beneficiary under subsection (3) if the beneficiary were not the spouse of another person; and

                     (b)  the beneficiary's spouse's rebate income for the year of income (reduced by any amount included in the spouse's assessable income under section 100); and

                     (c)  any share of the net income of a trust estate to which the beneficiary's spouse is presently entitled and that is assessed under section 98.

             (6)  Regulations made for the purposes of this section may be expressed to apply in relation to a year of income any part of which occurred before the notification of the regulations.