Document ID: chunk:federal_register_of_legislation:C2024C00381:section:15:p2
Version: federal_register_of_legislation:C2024C00381
Segment Type: section
Provision Reference: s 15 (pt 2/4)
Character Range: 35548–37943

the rates of tax payable by the trustee in respect of that share of the net income of the trust estate are as set out in Part II of Schedule 12.
 (4) Subject to subsection (5), where:
 (a) the trustee of a trust estate is liable to be assessed and to pay tax under section 98 of the Assessment Act in respect of the share of a non‑resident beneficiary of the net income of the trust estate; and
 (b) Division 6AA of Part III of the Assessment Act applies to a part (in this subsection referred to as the eligible part) of that share;
the amount of tax payable under subsection (3) in respect of the eligible part of that share shall not exceed:
 (c) where the eligible part of that share does not exceed $416:
 (i) the amount ascertained by applying the second resident personal tax rate to the amount of the eligible part of that share; or
 (ii) the amount ascertained by deducting from the amount of tax that would be payable by the trustee if the rates referred to in Part II of Schedule 10 were applied to that share of that net income the amount of tax that would be payable by the trustee if those rates were applied to that share of that net income reduced by the amount of the eligible part of that share;
  whichever is the greater; or
 (d) where the eligible part of that share exceeds $416 but does not exceed the non‑resident phase‑out limit:
 (i) the amount ascertained by applying the second resident personal tax rate to $416, and then adding 66% of the amount by which the eligible part of that share exceeds $416; or
 (ii) the amount ascertained by deducting from the amount of tax that would be payable by the trustee if the rates referred to in Part II of Schedule 10 were applied to that share of that net income the amount of tax that would be payable by the trustee if those rates were applied to that share of that net income reduced by the amount of the eligible part of that share;
  whichever is the greater.
 (5) Subsection (4) does not apply in relation to the share of a beneficiary of the net income of a trust estate if Division 6AA of Part III of the Assessment Act applies to a part of a share of the beneficiary of the net income of another trust estate or to parts of the shares of the beneficiary of the net incomes of other trust estates.
 (6) Where:
 (a) by reason of the application of subsection (5), subsection (4) does not apply in relation to the share