Private ruling: Trust - beneficiary - excepted person
Date of advice: 19 October 2016
Published: January 2017
Ruling period: Year ended 30 June 20XY
Date scheme commenced: 1 July 20XX

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

Relevant facts and circumstances: You are a minor. A person received a Carer Allowance from X for the care they provided for you during the 20XX-XY financial year.

Relevant legislative provisions: Income Tax Assessment Act 1936 Subsection 102AC(2)

Reasons for decision: Summary: Division 6AA of the 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 to include a minor 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. A minor is a person less than 18 years of age on the last day of the year of income. You are a minor and a person was paid a Carer Allowance for the care they provided to you for a period which included 30 June 20XY. Therefore you are considered to be an 'excepted person' for the purposes of subsection 102AC(2) of the ITAA 1936.