Private ruling: Excepted person
Date of advice: 14 April 2026
Published: 29 June 2026
Ruling period: Year ended 30 June 20YY | Year ended 30 June 20YY
Date scheme commenced: DD MM YYYY

Ruling: Q1: Is Person A an excepted person for the purposes of paragraph 102AC(2)(d) of the Income Tax Assessment Act 1936 (ITAA 1936)? | A1: 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'. A person is an excepted person for the purposes of paragraph 102AC(2)(d) of the ITAA 1936 where the Commissioner has received a certificate issued by a qualified medical practitioner certifying that the minor is a disabled child, or disabled adult with the meaning of Part 2.19 of the Social Security Act 1991 and the Commissioner is satisfied that the minor is such a person on the last day of the income year. A medical certificate has been supplied from a qualified medical practitioner that meets the requirements of paragraph 102AC(2)(d) of the ITAA 1936. The Commissioner is satisfied that you are an excepted person under paragraph 102AC(2)(d) of the ITAA 1936.

Relevant facts and circumstances: The Trust is an Australian resident discretionary trust. You are the trustee of the Trust. On DD MM YYYY, Person A was born. On DD MM YYYY, after a clinical exome comprehensive trio analysis, Person A was diagnosed with KBG syndrome. KBG us genetic condition which causes intellectual disability. Developmental delay/intellectual disability can range from mild to severe. On DD MM YYYY, Person A received a medical certificate from a qualified medical practitioner stating their diagnosis and describing the condition as enduring. The certificate also stated that their disability meets the criteria of having a disability as defined by the Social Security Act 1991 and they will be having ongoing specialist review and assessment. Person A's parents do not receive a carer allowance due to exceeding the income threshold. Person A currently does not receive trust distributions; however, may receive them from you in the future.

Relevant legislative provisions: Income Tax Assessment Act 1936 paragraph 102AC(2)(d) | Income Tax Assessment Act 1936 Division 6AA