Document ID: chunk:federal_register_of_legislation:C2005A00077:clause:4_2:p1
Version: federal_register_of_legislation:C2005A00077
Segment Type: clause
Provision Reference: sch 4 cl 2 (pt 1/2)
Character Range: 11745–14342

2  At the end of Division 61
Add:

Subdivision 61‑K—Mature age worker tax offset

Guide to Subdivision 61‑K

61‑550  What this Subdivision is about

      You may get a tax offset under this Subdivision if you are an Australian resident individual who is aged 55 or over at the end of the income year and who has worked during the year.
      The amount of the offset depends on the amount of your net income from working, but is up to a maximum of $500. (Basically, your net income from working is the total of amounts of assessable income that are mainly a reward for your personal efforts or skills, less any relevant deductions.)

Table of sections

Operative provisions

61‑555 Object of this Subdivision
61‑560 Entitlement to the mature age worker tax offset
61‑565 The amount of the tax offset
61‑570 Definition of net income from working

Operative provisions

61‑555  Object of this Subdivision

  The object of this Subdivision is to provide a *tax offset (subject to certain income conditions) as an incentive to Australians aged 55 or over to remain in work.

61‑560  Entitlement to the mature age worker tax offset

  You are entitled to a *tax offset for an income year if you are an Australian resident individual who is aged 55 or over at the end of the income year.

Note: However, the amount of the tax offset is nil if have you no net income from working or your net income from working is over $63,000 (or $58,000 for the 2004‑2005 income year).

61‑565  The amount of the tax offset

 (1) If your *net income from working for the income year is equal to or less than $53,000, the amount of the *tax offset is the lesser of the amount worked out under the following formula and $500:

 (2) If your *net income from working for the income year is greater than $53,000, the amount of the *tax offset is the amount worked out under the following formula (but not below nil):

Special rule for the 2004‑2005 income year

 (3) For the 2004‑2005 income year, references in subsections (1) and (2) to $53,000 are taken instead to be references to $48,000.

61‑570  Definition of net income from working

 (1) Your net income from working for an income year is the sum of the following amounts (excluding amounts covered by subsection (2)):
 (a) your assessable income for the year to the extent that it consists of the following:
 (i) *personal services income;
 (ii) assessable income from a *business you carry on;
 (iii) an amount included under section 393‑15 of Schedule 2G to the Income Tax Assessment Act 1936 as a result of the repayment of a *farm management deposit;