Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Subject to this section, a taxpayer who, during the year of income, serves as a member of the Defence Force at an overseas locality is entitled, in his assessment in respect of income of the year of income, to a rebate of tax ascertained in accordance with this section.
(1A) A taxpayer is not entitled to a rebate under this section in relation to service:
(a) as or under an attachè at an Australian Embassy or Legation in an overseas locality at a time as at which that locality was, or is deemed to have been, a specified locality for the purposes of this subsection; or
(b) with the South‑East Asia Treaty Organization Military Planning Office.
(1B) Where the Chief of the Defence Force or a service chief or a person authorized by a chief of staff to give certificates under this subsection certifies, and the Treasurer is satisfied, that any service of a taxpayer in any locality was or will be performed in circumstances similar to those in which any service referred to in subsection (1A) is performed, the taxpayer is not entitled to a rebate under this section in relation to that service.
(2) Subject to the succeeding provisions of this section, the rebate allowable under this section in the assessment of a taxpayer in respect of income of the year of income is:
(a) where the total period of service of the taxpayer at overseas localities during the year of income is more than one‑half of the year of income, or where the taxpayer dies at an overseas locality during the year of income--an amount equal to the sum of:
(i) $338; and
(ii) an amount equal to 50% of the concessional rebate amount; or
(b) in any other case--such amount as, in the opinion of the Commissioner, is reasonable in the circumstances, being an amount not greater than the amount of the rebate to which the taxpayer would have been entitled under this section if paragraph (a) had applied to him in respect of the year of income.
(3) For the purposes of subsection (2), the total periods of service of the taxpayer in any year of income at overseas localities shall be deemed to include any period of service of the taxpayer as a member of the Defence Force in that year of income in the prescribed area.
(3A) For the purposes of subsection (2), the total periods of service of the taxpayer in any year of income at overseas localities shall be deemed not to include any period of service of the taxpayer in respect of which an exemption from income tax applies under section 23AC, 23AD or 23AG.
(4) The aggregate of the rebates allowable under this section and section 23AB or under this section and section 79A in the assessment of a taxpayer in respect of income of a year of income shall not exceed an amount equal to the sum of:
(a) $338; and
(b) an amount equal to 50% of the concessional rebate amount.
(4A) Where:
(a) but for subsection (4) and this subsection, a rebate would be allowable under this section and a rebate would be allowable under section 79A in the assessment of a taxpayer in respect of income of a year of income; and
(b) the rebate allowable under section 79A exceeds an amount equal to the sum of:
(i) $338; and
(ii) an amount equal to 50% of the concessional rebate amount;
the taxpayer is not entitled to a rebate under this section in that assessment and subsection (4) does not apply in relation to that assessment.
(5) For the purposes of this section the Treasurer may, by writing signed by him and deposited with the Commissioner, declare that a locality outside Australia specified in the declaration shall:
(a) by reason of the uncongenial nature of service in that locality and the isolation of the locality, be, or be deemed to have been, as from a date, or during a period, (whether before or after the date of the declaration) specified in the declaration, a locality in relation to which this section applies; or
(b) as from a date (whether before or after the date of the declaration) specified in the declaration, cease, or be deemed to have ceased, to be such a locality;
and this section shall apply, or be deemed to have applied, and shall cease to apply, or be deemed to have ceased to apply, in relation to any such locality accordingly.
(5A) The Treasurer may, by writing signed by him and deposited with the Commissioner, declare that an overseas locality specified in the declaration shall become, or be deemed to have become, on a specified date, or shall cease, or be deemed to have ceased, on a specified date, to be, a specified locality for the purposes of subsection (1A).
(5B) Nothing in section 170 prevents the amendment of an assessment at any time for the purpose of allowing a rebate to which the taxpayer has become entitled under this section after the making of the assessment.
(6) For the purpose of this section:
"concessional rebate amount" , in relation to a taxpayer in relation to a year of income, means the sum of the following rebates (if any):
(a) any rebate to which the taxpayer would be entitled under section 159K, apart from subsection 159K(1A);
(aa) any rebate to which the taxpayer would be entitled under section 159L, apart from subsections 159L(3A), (5A) and (5B);
(b) any rebate to which the taxpayer is entitled under section 159J in respect of a dependant included in class 5 or 6 in the table in subsection 159J(2);
(ba) any rebate to which the taxpayer would be entitled under section 159J in respect of a dependant included in class 2 in the table in subsection 159J(2), apart from subsections 159J(1AA), (3AA) and (3AB);
(c) any rebate to which the taxpayer would, disregarding subsection 159J(1A), be entitled under section 159J in respect of a dependant included in class 3 or 4 in the table insubsection 159J(2);
(d) any rebate to which the taxpayer would be entitled under section 159J in respect of a dependant included in class 1 in the table in subsection 159J(2) (ignoring subsections 159J(1AA), (3AA) and (3AB)) if subsection 159J(1B) also included a reference to any dependant included in class 1 of that table and the amount applicable to class 1 of that table were $2,440.
Note 1: This definition lets a taxpayer include the dependent spouse rebate (without child), the child‑housekeeper rebate or the housekeeper rebate for the purpose of working out the concessional rebate amount under this section, even if the taxpayer or the taxpayer's spouse is eligible for family tax benefit at the Part B rate for the whole or part of a year.
Note 2: Another effect of this definition (see paragraph (d)) is to let a taxpayer include the dependent spouse rebate (with child), despite its abolition by the A New Tax System (Family Assistance) (Consequential and Related Measures) Act (No. 1) 1999 , for the purpose of working out the concessional rebate amount.
"locality" means an area of land or waters or an area of land and waters.
"overseas locality" means, in relation to service during any period or death at any time, a locality in relation to which, during that period or at that time, this section applies or is deemed to have applied; and
"the prescribed area" has the same meaning as that expression has in section 79A.