Private ruling: mature age worker tax offset
Published: December 2011
Ruling period: Year ended 30 June 2011
Date scheme commenced: 1 July 2010

Ruling: Q1: Are you entitled to the mature age worker tax offset? | A1: No

Relevant facts and circumstances: You are over 55 years old and retired. You buy and sell shares to make money. You are not in a business of share trading. You lodged a tax return for the 2011 income year. Your taxable income consisted of amounts of interest, dividends, franking credits, capital gains and foreign income. The majority of this income was from your share trading activity.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 61-K | Income Tax Assessment Act 1997 Section 61-550 | Income Tax Assessment Act 1997 Section 61-555 | Income Tax Assessment Act 1997 Section 61-560 | Income Tax Assessment Act 1997 Section 61-570 | Income Tax Assessment Act 1997 Section 6(1) | Income Tax Assessment Act 1936 S ubsection 160AEA(1)

Reasons for decision: Summary: A non-refundable mature age worker tax offset is available to taxpayers aged 55 years or over by 30 June of the relevant year who have 'net income from working' of less than $63,000 in that year. Subsection 61-570(2) of the ITAA 1997 defines 'net income from working' as excluding, among other things, 'passive income' as defined in subsection 160AEA(1) of the Income Tax Assessment Act 1936 (ITAA 1936). Passive income includes dividends, interest, rental income, royalties and capital gains, superannuation lump sums, employment termination payments, unused annual leave payments and unused long service leave payments. Whilst you may dedicate time to researching the share market to allow you to buy and sell shares you are not considered to be in the business of share trading. Your income for 2011 was comprised of interest, dividends and capital gains, which is all passive income. Therefore, as you are not considered to have income from working, you are not entitled to a mature age worker tax offset.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.