Private ruling: SAPTO and lodgment requirements
Date of advice: 9 October 2015
Published: October 2015
Ruling period: Year ended 30 June 2013 | Year ended 30 June 2014 | Year ended 30 June 2015
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you eligible for the Senior Australians and Pensioners Tax Offset (SAPTO)? | A1: Yes | Q2: Are you required to lodge a tax return in the years in question? | A2: No

Relevant facts and circumstances: You turned 60 during the relevant financial year. You lived with your spouse for all of the financial year. Your income consists of: • Tax exempt superannuation pension • Tax exempt pension from the Department of Veterans Affairs • Taxable superannuation income stream

Relevant legislative provisions: Income Tax Assessment Act 1936 Section 160AAAA

Reasons for decision: Summary: Under section 160AAAA of the Income Tax Assessment Act 1936 (ITAA 1936) a taxpayer may be eligible for the tax offset for low income aged persons and pensioners (SAPTO). Section 160AAAA of the ITAA 1936 states that you will be eligible for SAPTO if all of the following apply: • You are eligible for a pension, allowance or benefit under the Veterans Entitlement Act 1986 (other than Part VII) ; • You have reached aged pension age, within the meaning of that Act; • You are not in gaol at any time during the financial year; and • Your rebate income is below the appropriate threshold. A taxpayer's rebate income is the total of their assessable income, reportable employer superannuation contributions, adjusted fringe benefits, deductible superannuation contributions, and net investment loss. The Veterans Entitlement Act 1986 states that the age pension age is 60. In your case, you fulfil the conditions for SAPTO as follows: • You received a pension paid under the Veterans Entitlement Act 1986 ; • You were aged over 60 in the 2012-13 financial year • You were not in goal at any time; and • Your rebate income is below the appropriate threshold. You are therefore eligible for the SAPTO. The ATO website www.ato.gov.au contains a comprehensive list of the circumstances where a taxpayer is required to lodge a tax return. One of the reasons is where a taxpayer is eligible for SAPTO, and their income is above the appropriate threshold for their circumstances (single married, or married but had to live apart). The threshold for all of the years in question for a taxpayer who has a spouse is $28,974. However, even if a taxpayer is under this threshold, they will still be required to lodge if any of the following applies: • You had a reportable fringe benefit amount • You had reportable employer superannuation contributions • You were entitled to the private health insurance rebate, but did not claim it directly from your health insurer through reduced premiums • You carried on a business • You made a loss or can claim a prior year loss • You were 60 years or older and you received an Australian superannuation lump sum that included an untaxed element or a death benefit superannuation lump sum paid to you as a non-dependent • You were 59 years or under and you received an Australian superannuation lump sum that included a taxed element or an untaxed element • You were entitled to a distribution from a trust or you had an interest in a partnership, and the trust or partnership carried on a business of primary production • You had exempt foreign employment income and at least $1 of other income • You are a special professional covered by the averaging provisions • You received income from dividends or distributions which had franking credits or TFN withholding attached • You made a personal contribution to a superannuation fund and will be eligible to receive a superannuation co-contribution; or • You were the liable parent or a recipient parent under a child support assessment. As none of these circumstances applies to you, and you are eligible for SAPTO, you are not required to lodge a tax return.