Private ruling: Excepted person - minor
Date of advice: 2 February 2026
Published: 23 March 2026
Ruling period: Year ending 30 June 20XX to Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

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. 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' and 'disabled adult' are defined in Part 2.19 of the Social Security Act 1991 (SSA 1991) as: disabled child means 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. disabled adult means a person aged 16 or more who: • has a physical, intellectual, or psychiatric disability and • is likely to suffer from that disability permanently or for an extended period. A letter from Peron A's paediatrician has been provided which certifies that they suffer from a permanent medical condition. Therefore, Person A meets the definition of a disabled child under the SSA 1991. Upon turning 16 years of age Person A will meet the definition of a disabled adult under the SSA 1991. The Commissioner is satisfied that Person A is an excepted person under subsection 102AC(2) of the ITAA 1936.

Relevant facts and circumstances: Company X is the corporate trustee (the Trustee) of a trust (the Trust). The Trust is a discretionary trust established for a broad class of beneficiaries, which includes a beneficiary who is less than 16 years of age, being Person A. Person A's paediatrician issued a letter in which they indicated that they had formally diagnosed Person A with a permanent medical condition. Person A's paediatrician had issued a letter addressed to the National Disability Insurance Scheme (NDIS) Consultant seeking support funding from the NDIS for Person A in relation to their ongoing support and therapy requirements due to their medical condition. The Trustee is considering making distributions of trust income to Person A.

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