Private ruling: Trust income - excepted persons
Date of advice: 1 August 2025
Published: 29 September 2025
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you an excepted person for the purposes of subsection 102AC(2) of the Income Tax Assessment Act 1936 (ITAA 1936? | A1: Yes.

Relevant facts and circumstances: You were born on Date one. You were born with a medical condition which has required you to undergo surgery. As a result of the surgery, you have been left with a permanent disability. Due to the permanent nature of your disability, you will require ongoing assistance in those areas. Your disability is permanent and you will need sustained assistance to ensure your well-being and development. You have provided a medical certificate issued by your consultant paediatrician. This certificate describes your disability and confirms that your condition is permanent. The medical certificate also details the kind of ongoing support you will require to reach your potential. You are a potential beneficiary of Trust A and Trust B. The trustees of these trusts may make you presently entitled to income prior to 30 June 20XX in an effort to provide for your ongoing and significant medical expenses. Assumption Your disability is permanent and will not change substantially during the ruling period.

Relevant legislative provisions: Income Tax Assessment Act 1936 Division 6AA | Income Tax Assessment Act 1936 section 102AC(2) | Income Tax Assessment Act 1936 section 102AG

Reasons for decision: Summary: You are an excepted person for the purposes of subsection 102AC(2) of the ITAA 1936. | Detailed Reasoning - Detailed reasoning: Subsection 102AC(1) of the ITAA 1936 provides that for the purposes of Division 6AA of the ITAA 1936, a person is a prescribed person in relation to a year of income if: (a) the person is less than 18 years of age on the last day of the year of income; and (b) the person is not an excepted person in relation to the year of income. Subsection 102AC(2) provides that subject to this section, a person (in this subsection referred to as the minor is an excepted person in relation to a year of income for the purposes of this Division if, and only if: (b) the minor was engaged in a full-time occupation on the last day of the year of income (c) the minor is a person: (i) in respect of whom a carer allowance under the Social Security Act 1991 was payable in respect of a period that included the last day of the year of income; or (ii) to whom a disability support pension under the Act was payable in respect of a period that included the last day of the year of income; or (d) The Commissioner: (ii) has received a certificate issued by a legally qualified medical practitioner certifying that the minor is: (A) a disabled child, or a disabled adult, within the meaning of Part 2.19 of the Social Security Act 1991; or (B) a person who has a continuing inability to work within the meaning of Part 2.3 of the Social Security Act 1991 or is permanently blind; and (iii) is satisfied that, on the last day of the year of income, the minor was a person of the kind mentioned in sub-paragraph (i)(A) or (B). | Detailed Reasoning - Application to your circumstances: You have supplied a medical certificate from a qualified medical practitioner certifying that you are a child under 16 years and suffer from a permanent medical condition. You therefore meet the definition of a 'disabled child' under the Social Security Act 1991 . The Commissioner is satisfied that you are an excepted person under subsection 102AC(2) of the ITAA 1936.