Income Tax Assessment Act 1936

PART III - LIABILITY TO TAXATION  

Division 6 - Trust income  

SECTION 95AB   MODIFICATIONS FOR SPECIAL DISABILITY TRUSTS  

95AB(1)   [ Application]  

This Division applies with the modifications set out in this section in relation to a year of income in relation to a trust estate that is a special disability trust at the end of the year of income.

95AB(2)   [ Principal beneficiary presently entitled]  

Treat the principal beneficiary of the trust estate as being presently entitled to all of the income of the trust estate of the year of income.

95AB(3)   [ Residency]  

If the principal beneficiary of the trust estate is a resident of Australia at the end of the year of income treat that person as being under a legal disability throughout the year of income.

95AB(4)   [ No income of trust estate]  

If there is no income of the trust estate assume that:

(a) there is income of the trust estate of the year of income; and

(b) the principal beneficiary of the trust estate is presently entitled to all of the income of the trust estate of the year of income.

95AB(5)   [ Assessment of deductions]  

If the amount to be deducted under subsection 100(2) from the income tax assessed against the principal beneficiary is greater than the amount of the income tax assessed against the principal beneficiary, the Commissioner must pay to the principal beneficiary an amount equal to the difference between those 2 amounts.

Note:

The tax offset is subject to the refundable tax offset rules: see section 67-23 of the Income Tax Assessment Act 1997 .