Private ruling: Excepted person
Published: June 2015
Ruling period: Year ended 30 June 2016 | Year ended 30 June 2017 | Year ended 30 June 2018 | Year ended 30 June 2019
Date scheme commenced: 1 July 2015

Ruling: Q1: Are you an excepted person for the purposes of Division 6AA of the Income Tax Assessment Act 1936 (ITAA 1936)? | A1: No.


Relevant legislative provisions: Income Tax Assessment Act 1936 Division 6AA | Income Tax Assessment Act 1936 subsection 102AC(2) | Social Security Act 1991 Part 2.19

Reasons for decision: Summary: Division 6AA of the Income Tax Assessment Act 1936 (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 and includes a person in respect of whom the Commissioner: • has received a certificate issued by a legally qualified medical practitioner certifying that the minor is a disabled child within the meaning of Part 2.19 of the Social Security Act 1991 (SSA), and • is satisfied that, on the last day of the income year, the person is a disabled child within the meaning of Part 2.19 of the SSA. Part 2.19 of the SSA is the legislation for carer allowance. Under section 952 of Part 2.19 of the SSA 1991, a 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. Section 953 of the SSA provides the conditions that must be met in order to qualify for a carer allowance. One of these conditions is that either of the following must apply: • The disability from which the care receiver is suffering is declared, under subsection 38E(3), to be a recognised disability for the purposes of this section; or • The person has been given a qualifying rating of intense under the disability care load assessment (child) determination for the care receiver. A list of recognised disabilities is found in schedule 3 of Disability Care Load Assessment (Child) Determination 2010. In your case, we accept that you suffer from a disability and that you are likely to suffer from it for an extended period of time. However, your disability is not included as a recognised disability for carer allowance. Therefore, you do not satisfy the conditions necessary to be considered a 'disabled child' within the meaning of part 2.19 of the SSA. Furthermore, the information provided does not include a certificate issued by a legally qualified medical practitioner certifying you are a disabled child within the meaning of Part 2.19 of the SSA. Accordingly, you are not an excepted person for the purposes of Division 6AA of the ITAA 1936.

Relevant facts: You were born with a disability. | You are under 16 years of age. | Lifelong aids and participation in an early intervention program is required. | You currently receive a Commonwealth administered support payment to support your requirements.