Private ruling: Excepted person
Date of advice: 29 July 2021
Published: October 2021
Ruling period: Year ending 30 June 2022 | Year ending 30 June 2023 | Year ending 30 June 2024 | Year ending 30 June 2025 | Year ending 30 June 2026 | Year ending 30 June 2027 | Year ending 30 June 2028 | Year ending 30 June 2029 | Year ending 30 June 2030 | Year ending 30 June 2031 | Year ending 30 June 2032 | Year ending 30 June 2033 | Year ending 30 June 2034 | Year ending 30 June 2035
Date scheme commenced: 1 July 2021

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'. An 'excepted person' is defined in subsection 102AC(2) of the ITAA 1936. You have supplied a medical certificate from a medical practitioner certifying that person A, a child under 18 years, is suffering a permanent disability within the meaning of Part 2.19 of the Social Security Act 1991 . Accordingly, the Commissioner is satisfied that person A is an excepted person under subsection 102AC(2)(d) of the ITAA 1936.

Relevant facts and circumstances: Person A is under 18 years old. Person A is an eligible beneficiary as per the Trust Deed, as they are the child of the primary beneficiary for discretionary XYZ family unit trust. The family trust will make distributions to person A. The income derived from the family trust is not personal services income. Person A is registered with the NDIS. You have provided a medical certificate from a qualified medical practitioner, certifying that Person A has a disability. The disability is a recognised Disabilities as outlined in Schedule 3 of the 'List of Recognised Disabilities" of the Disability Care Load Assessment (Child) Determination 2010 made under section 38E of the Social Security Act 1991 .

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