Private ruling: Excepted income
Date of advice: 31 July 2019
Published: September 2019
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you an excepted person for the purposes of paragraph 102AC(2)(d) of the Income Tax Assessment Act 1936 (ITAA 1936)? | A1: Yes. 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 when the Commissioner has received a certificate issued by a qualified medical practitioner certifying that the minor is a disabled child within the meaning of Part 2.19 of the Social Security Act 1991 on the last day of the income year. You have supplied a medical certificate from a medical practitioner certifying that you are a child under 16 years who is suffering a disability permanently. The Commissioner is satisfied that you are an excepted person under subsection 102AC (2) of the ITAA 1936. This ruling applies for the following periods Year ended 30 June 20XX Year ending 30 June 20XX Year ending 30 June 20XX Year ending 30 June 20XX Year ending 30 June 20XX


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


Relevant facts: Your date of birth is 20xx. | Your parent, 'A' operates a business via discretionary trust called the 'B' Trust. | The family trust will make distributions to you. | The income derived from the family trust is not personal services income. | You have applied for NDIS pension and are awaiting approval. | You have provided a medical certificate from a qualified medical practitioner certifying that you have a disability.