Commonwealth Consolidated Regulations Commonwealth Consolidated Regulations(1) Where the assessable income of a taxpayer of a year of income includes an amount paid as rebatable pension, the taxpayer is entitled in his or her assessment in respect of income of the year of income to a rebate of tax of:
(a) if the rebate income of the taxpayer of the year of income does not exceed his or her rebate threshold -- the taxpayer's rebate amount; or
(b) if the rebate income of the taxpayer of the year of income exceeds his or her rebate threshold -- the taxpayer's rebate amount, reduced by 12.5 cents for each $1 of the amount of the excess.
(2) For the purposes of this regulation, the taxpayer's rebate threshold for a year of income is calculated using the formula:
where:
"Tax-free threshold" has the meaning given by regulation 148.
"Taxpayer's rebate amount" has the meaning given by subregulations (3) and (3A).
"Lowest marginal tax rate" has the meaning given by regulation 148;
or, if the amount calculated using the formula is not an amount of whole dollars, that amount rounded up to the nearest whole dollar.
(3) Subject to subregulation (5), for the purposes of this regulation, the taxpayer's rebate amount for a year of income is calculated using the formula:
where:
"Lowest marginal tax rate" has the meaning given by regulation 148.
"Annual pension amount" has the meaning given by subregulation (4).
"Non-pension income limit" has the meaning given by subregulation (4).
"Tax-free threshold" has the meaning given by regulation 148;
or, if the amount calculated using the formula is not an amount of whole dollars, that amount rounded up to the nearest whole dollar.
(3A) Subject to subregulation (5), for the purposes of this regulation, the Taxpayer's rebate amount for the 2000‑2001 year of income or a later year of income is increased:
(a) by $415 if the taxpayer has received a single‑rate pension; or
(aa) by $331 if the taxpayer has received an illness‑ separated‑rate pension; or
(b) by $304 in any other case.
(4) For the purposes of the application of this regulation in determining the rebate to which a taxpayer is entitled under subregulation (1) in relation to a year of income:
(a) where the taxpayer has received a partnered‑rate pension -- a reference in this regulation to the annual pension amount is, subject to subregulation (4A), a reference to whichever of the following amounts is the greater:
(i) the amount that would have been included in his or her assessable income of the year of income if he or she had received a partnered‑rate service pension throughout that year;
(ii) the amount that would have been included in his or her assessable income of the year of income if he or she had received a partnered‑rate social security pension throughout that year; and
(b) where the taxpayer has received a illness‑separated rate pension -- a reference in this regulation to the annual pension amount is, subject to subregulation (4A), a reference to whichever of the following amounts is the greater:
(i) the amount that would have been included in his or her assessable income of the year of income if he or she had received a illness‑separated rate service pension throughout that year;
(ii) the amount that would have been included in his or her assessable income of the year of income if he or she had received a illness‑separated rate social security pension throughout that year; and
(c) where the taxpayer has received a single‑rate pension -- a reference in this regulation to the annual pension amount is, subject to subregulation (4A), a reference to whichever of the following amounts is the greater:
(i) the amount that would have been included in his or her assessable income of the year of income if he or she had received a single‑rate service pension throughout that year;
(ii) the amount that would have been included in his or her assessable income of the year of income if he or she had received a single‑rate social security pension throughout that year; and
(d) a reference in this regulation to whichever of the amounts referred to in paragraph (a), (b) or (c) is:
(i) in accordance with this regulation, the annual pension amount; and
(ii) an amount of dollars and cents;
is a reference to that amount rounded down to the nearest whole dollar; and
(e) a reference in this regulation to the non‑pension income limit is a reference to whichever of the following amounts is applicable:
(i) if the annual pension amount in relation to the taxpayer for the year of income is referred to in subparagraph (a) (i) or (b) (i) or paragraph (4A) (a) or (c) -- the amount, indexed in accordance with Division 21 in Part III of VEA, applicable under item 4 in Table D1 at point 41‑D4;
(ii) if the annual pension amount in relation to the taxpayer for the year of income is referred to in subparagraph (a) (ii) or (b) (ii) or paragraph (4A) (b) or (d) -- the amount, indexed in accordance with Division 2 of Part 3.16 of SSA91, applicable under item 4 of column 2 in Table E‑1 at point 1064‑E4 of SSA91;
(iii) if the annual pension amount in relation to the taxpayer for the year of income is referred to in subparagraph (c) (i) or paragraph (4A) (e):
(A) in the case of the year of income commencing on 1 July 1989 -- $1,300; or
(B) in the case of a subsequent year of income -- the amount, indexed in accordance with Division 21 in Part III of VEA, applicable under item 1 in table D‑1 at point 41‑D4 of that Act; and
(iv) if the annual pension amount in relation to the taxpayer for the year of income is referred to in subparagraph (c) (ii) or paragraph (4A) (f):
(A) in the case of the year of income commencing on 1 July 1989 -- $1,300; or
(B) in the case of a subsequent year of income -- the amount, indexed in accordance with Division 2 of Part 3.16 of SSA91, applicable under item 1 of column 2 in Table E‑1 at point 1064‑E4 of SSA91;
(f) a reference in this regulation to the partner of a taxpayer is a reference to whichever of the following persons is applicable:
(i) where the assessable income of the taxpayer of the year of income includes an amount paid as a partnered‑rate service pension or a separated‑rate service pension:
(A) if, on the last day of the year of income, a person was the partner, within the meaning of Part III of the Veterans' Entitlements Act 1986 , of the taxpayer -- that person; or
(B) if sub‑subparagraph (A) does not apply but, in the year of income, the death occurred of the last person who was the partner, within the meaning of Part III of the Veterans' Entitlements Act 1986 , of the taxpayer -- that person;
(ii) where the assessable income of the taxpayer of the year of income includes an amount paid as a partnered‑rate social security pension or a separated‑rate social security pension:
(A) if, on the last day of that year, a person was the partner, within the meaning of the SSA91, of the taxpayer -- that person; or
(B) if sub‑subparagraph (A) does not apply but, in the year of income, the death occurred of the last person who was the partner, within the meaning of the SSA91, of the taxpayer -- that person; and
(g) a reference in this regulation to the taxpayer's adjusted rebate amount is a reference to the amount that would have been the taxpayer's rebate amount if the reference in subregulation (3) to the annual pension amount were a reference to the adjusted annual pension amount; and
(h) subject to subregulation (7), a reference in this regulation to the adjusted annual pension amount is a reference to:
(i) if the assessable income of the taxpayer of the year of income includes an amount paid as a illness‑ separated rate pension -- the amount determined in accordance with paragraph (b); and
(ii) in any other case, if the assessable income of the taxpayer of the year of income includes an amount paid as a partnered‑rate pension -- the amount determined in accordance with paragraph (a).
Annual pension amount -- unequal numbers of pension paydays under SSA91 and VEA in the year
(4A) In this regulation, annual pension amount , in relation to a taxpayer in a year of income in which there are different numbers of pension paydays under SSA91 and VEA and in which the taxpayer has received:
(a) a partnered‑rate service pension; or
(b) a partnered‑rate social security pension; or
(c) an illness‑separated‑rate service pension; or
(d) an illness‑separated‑rate social security pension; or
(e) a single‑rate service pension; or
(f) a single‑rate social security pension;
means the amount that would have been included in his or her assessable income for that year of income if he or she had received that pension throughout that year of income.
(5) Subject to subregulation (6), for the purposes of this regulation, if the assessable income of a taxpayer of a year of income includes amounts paid as more than 1 kind of pension referred to in paragraph (4) (a), (b) or (c), then the taxpayer's rebate amount for the year is the greatest amount calculated in accordance with subregulations (3) and (3A).
(6) For the purposes of this regulation, if:
(a) subject to subregulation (7), the assessable income is the assessable income of a taxpayer (in this subregulation and subregulation (7) called the first taxpayer ) who is, at any time of the year of income, entitled to rebate of tax under section 160AAAA or 160AAA of the Act; and
(b) the assessable income of another taxpayer, being the partner of the first taxpayer (in this subregulation called the second taxpayer ) of the year of income includes an amount paid as a partnered‑rate pension or a separated‑rate pension; and
(c) the amount of the rebate to which the second taxpayer is, apart from this subregulation, entitled under subregulation (1) in relation to the year of income is less than the second taxpayer's rebate amount for that year; and
(d) subject to subregulation (7), the first taxpayer's adjusted rebate amount, or rebate amount under regulation 150AB, for the year of income exceeds the tax payable by the first taxpayer in respect of income of that year (disregarding any credits or rebates); and
(e) the second taxpayer was not in receipt of a benefit under Parts 2.11, 2.12, 2.14 or 2.15 of SSA91 on the last day of the year of income;
the following provisions have effect:
(f) in determining the rebate to which the first taxpayer is entitled under subregulation (1) or regulation 150AB for the year of income, the first taxpayer's rebate amount is to be reduced by the amount of the excess referred to in paragraph (d);
(g) in determining the rebate to which the second taxpayer is entitled under subregulation (1) for the year of income, the second taxpayer's rebate amount for the year of income, not being a rebate amount determined by reference to a single‑rate pension, is to be increased by the amount of the excess referred to in paragraph (d).
(7) For the purposes of subregulation (6), if:
(a) the first taxpayer received at any time in the year of income a pension under Part 2.3, 2.4, 2.5 or 2.12A of SSA91 or Divisions 4, 5 and 6 of Part III of the Veterans' Entitlements Act 1986 ; and
(b) the pension payments were exempt payments under Subdivision 52‑A or 52‑B of the Income Tax Assessment Act 1997 ;
the amount of the assessable income of that year of the first taxpayer is to be calculated as if that pension were assessable income.
(8) This regulation applies whether the first taxpayer is, or is not, the same person as the second taxpayer.