Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p4
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 4/10)
Character Range: 1468736–1471342

lump sum accrued in whole or in part in a previous year.

      The amount of the offset is the amount of additional Medicare levy surcharge payable by you for the current year because of your lump sums and your spouse's lump sums.
      Alternatively, you may get a tax offset under this Subdivision if your spouse gets a tax offset under this Subdivision. The amount of the offset is the amount of additional Medicare levy surcharge payable by you for the current year because of your spouse's lump sums.

Table of sections

Operative provisions
61‑580 Entitlement to a tax offset
61‑585 The amount of a tax offset
61‑590 Definition of MLS lump sums

Operative provisions

61‑580  Entitlement to a tax offset

Tax offset for MLS lump sums paid to you
 (1) You are entitled to a *tax offset for the *current year if:
 (a) you are an individual; and
 (b) *Medicare levy surcharge is payable by you for the current year because of:
 (i) section 8B, 8C or 8D of the Medicare Levy Act 1986; or
 (ii) the A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999; and
 (c) your assessable income or *exempt foreign employment income for the current year includes one or more *MLS lump sums paid to you; and
 (d) the total of the MLS lump sums paid to you is greater than or equal to one‑eleventh of the total of the following amounts:
 (i) your normal taxable income (within the meaning of section 159ZR of the Income Tax Assessment Act 1936) for the current year, disregarding your *assessable FHSS released amount for the current year;
 (ii) your exempt foreign employment income for the current year;
 (iii) your *reportable fringe benefits total for the current year;
 (iv) the amounts that would be included in your assessable income for the current year if, and only if, subsection 271‑105(1) (family trust distribution tax) in Schedule 2F to the Income Tax Assessment Act 1936 were ignored;
 (v) your *reportable superannuation contributions for the current year;
 (vi) your *total net investment loss for the current year.
Note: The test in paragraph (d) is similar to the 10% test in paragraph 159ZRA(1)(b) of the Income Tax Assessment Act 1936, which also deals with a tax offset for lump sum payments in arrears.

Tax offset for MLS lump sums paid to your spouse
 (2) You are also entitled to a *tax offset for the *current year if:
 (a) during all or part of the current year, you were married to an individual (within the meaning of section 3 of the Medicare Levy Act 1986 or section 7 of the A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999); and
 (b) the individual