Document ID: chunk:federal_register_of_legislation:F2022C01160:reg:12:p1
Version: federal_register_of_legislation:F2022C01160
Segment Type: reg
Provision Reference: reg 12 (pt 1/2)
Character Range: 18785–21409

12  Transfer of unused base rebate amount from individual taxpayer to spouse or spouse's trustee
 (1) This section applies if:
 (a) either:
 (i) an individual (referred to in this section as the individual and the taxpayer) is entitled to a rebate under section 160AAAA of the Act for a year of income; or
 (ii) a trustee (referred to in this section as the first trustee and the taxpayer) is entitled to a rebate under section 160AAAB of the Act for a year of income in respect of a beneficiary who is an individual (referred to in this section as the individual); and
 (b) the base rebate amount for the rebate exceeds:
 (i) if subparagraph (a)(i) applies—the tax payable by the taxpayer in respect of income of the year; or
 (ii) if subparagraph (a)(ii) applies—the tax payable by the taxpayer in respect of the individual for the year;
  (disregarding any credits or rebates); and
Note: See subsection (5).
 (c) a person is at any time in the year the individual's spouse; and
 (d) the spouse (whether or not the same person as the first trustee):
 (i) is entitled to a rebate of tax (the spouse's rebate) under section 160AAAA of the Act for the year; or
 (ii) is a beneficiary in respect of whom a trustee (whether or not the same person as the individual or the first trustee) is entitled to a rebate of tax (the spouse's trustee's rebate) under section 160AAAB of the Act for the year; and
 (e) the amount of the spouse's rebate, or the spouse's trustee's rebate, is less than the base rebate amount for that rebate.
 (2) For the purposes of paragraph (1)(c), spouses living separately and apart on a permanent basis are treated as not being spouses of each other.
 (3) For the purposes of subsection 11(2) (but not section 10):
 (a) the base rebate amount for the taxpayer's rebate is reduced by the amount of the excess mentioned in paragraph (1)(b) of this section; and
 (b) the base rebate amount for the spouse's rebate, or the spouse's trustee's rebate, is increased by:
 (i) the amount of the excess mentioned in paragraph (1)(b) of this section; or
 (ii) if the conditions in subsection (4) are met—the greater of the amount worked out using the following formula and nil:

Note: Changing the base rebate amount may also change the rebate threshold: see subsections 9(4) to (7).
 (4) For the purposes of subparagraph (3)(b)(ii), the conditions are:
 (a) that the following is greater than $6 000:
 (i) if subparagraph (1)(a)(i) applies—the taxpayer's taxable income for the year;
 (ii) if subparagraph (1)(a)(ii) applies—the taxpayer's taxable income in relation to the individual for the year; and
 (b) that