Document ID: chunk:federal_register_of_legislation:C2004A05083:schedule:1:p5
Version: federal_register_of_legislation:C2004A05083
Segment Type: schedule
Provision Reference: sch 1 (pt 5/18)
Character Range: 11969–14454

20E apply, consists of or includes a special income component, sections 20C, 20D and 20E do not apply, but the rate of tax for every $1 of the taxable income, as worked out under clause 2 or 3 of Part 1 of Schedule 7, clause 2 of Part 1 of Schedule 9 or clause 3 of Part 1 of Schedule 11, as the case may be, and apart from sections 20C, 20D and 20E, is reduced by the rate worked out using the formula:

      (2) If:

          (a) a trustee of a trust estate is liable to be assessed and to pay tax under section 98 of the Assessment Act in respect of a share of a resident beneficiary of the net income of the trust estate of a year of income; and

          (b) Division 6AA of Part III of that Act applies to a part of that share; and

          (c) that share consists of or includes a capital gains component; and

          (d) section 20C or 20D applies, or would apart from section 20E apply, to the beneficiary;

      sections 20C, 20D and 20E do not apply, but the rate of tax for every $1 of the share, as worked out under clause 3 of Part 1 of Schedule 12 and apart from sections 20C, 20D and 20E, is reduced by the rate worked out using the formula:

      (3) In this section:

      tax-free threshold increase means the number of whole dollars in the sum of the amounts by which, subject to this Division, the amount of $5,400 set out in column 1 of the table in clause 1 of Part 1 of Schedule 7 is increased in relation to the taxpayer in respect of the year of income under sections 20C and 20D, or would be so increased if those sections applied to the taxpayer.

      taxable income means the number of whole dollars in the taxpayers' taxable income of the year of income.

      share of net income means the number of whole dollars in the beneficiary's share of the net income of the trust estate of the year of income.

20G Complementary tax

      (1) If:

          (a) a taxpayer to whom section 20C or 20D applies, or would apart from section 20E apply, in respect of a year of income is liable to pay complementary tax under subsection 156(4A) of the Assessment Act in respect of the whole or a part of the taxable income of the year of income; and

          (b) the adjusted tax-free threshold exceeds the taxable income; and

          (c) the taxable income exceeds $5,400;

      the rate of complementary tax, as determined under subsection 12(3), is reduced by the rate worked out using the formula:

      (2) If:

          (a) a taxpayer to