Private ruling: Section 99A – Commissioner’s discretion
Date of advice: 1 November 2018
Published: February 2019
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise his discretion under subdivision 99A(2) of the Income Tax Assessment Act 1936 (ITAA 1936) to apply progressive individual rates of tax as per section 99 of the ITAA 1936? | A1: Yes After consideration of the relevant factors, the Commissioner is of the opinion that it would be unreasonable that section 99A of the ITAA 1936 should apply in relation to that trust estate in relation to the relevant year of income. Accordingly section 99 of the ITAA 1936 will apply.

Relevant facts and circumstances: The deceased died on XX July 20XX. Administration of the deceased estate is ongoing. A Testamentary Trust was established under the deceased’s will for the benefit of the deceased’s family member, B as the sole beneficiary. Under the deceased’s will, the beneficiary is not entitled to the income of the trust until they attain 25 years of age. The beneficiary was born on XX May XXXX. Income of the Trust will accrue in the trust until the beneficiary attains 25 years. No other funds from outside the deceased estate will be brought into the estate or into the trust.

Relevant legislative provisions: Income Tax Assessment Act 1936 section 99 | Income Tax Assessment Act 1936 section 99A