Document ID: chunk:federal_register_of_legislation:C2024C00381:section:15:p3
Version: federal_register_of_legislation:C2024C00381
Segment Type: section
Provision Reference: s 15 (pt 3/4)
Character Range: 37723–40024

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 of a beneficiary of the net income of a trust estate in respect of which a trustee is liable to be assessed and to pay tax under section 98 of the Assessment Act; and
 (b) the sum of:
 (i) the part of that share to which Division 6AA of Part III of the Assessment Act applies; and
 (ii) the part of the share of the beneficiary of the net income of the other trust estate or the parts of the shares of the beneficiary of the net incomes of the other trust estates, as the case may be, to which that Division applies;
  does not exceed the non‑resident phase‑out limit;
the tax that, apart from this subsection, would be payable by the trustee in respect of the share referred to in paragraph (a) shall be reduced by such amount (if any) as, in the opinion of the Commissioner, is fair and reasonable.
 (7) In forming an opinion for the purposes of subsection (6) in relation to the share of a beneficiary of the net income of a trust estate of a year of income, the Commissioner shall have regard to:
 (a) any limitation that would be applicable under subsection (4) on the amount of tax that would be payable by a trustee in accordance with Part II of Schedule 12 in respect of a share of the net income of a trust estate of the year of income of an amount equal to the sum of the shares referred to in paragraph (6)(b) if:
 (i) Division 6AA of Part III of the Assessment Act applied to so much of that share as is equal to the sum of the parts of the shares referred to in paragraph (6)(b); and
 (ii) that share were a share of a non‑resident beneficiary who is not presently entitled to a share of the income of the year of income of any other trust estate;
 (b) the amount of any reduction previously granted by the Commissioner under subsection (6) in relation to the share of the beneficiary of the net income of the year of income of any other trust estate; and
 (c) such other matters (if any) as the Commissioner thinks fit.
 (8) The non‑resident phase‑out limit is the following amount rounded down to the nearest dollar:

Division 4—Pro‑rating of the tax‑free threshold