Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-20 - TAX OFFSETS  

Division 61 - Generally applicable tax offsets  

Subdivision 61-L - Tax offset for Medicare levy surcharge (lump sum payments in arrears)  

Operative provisions

SECTION 61-580   Entitlement to a tax offset  

Tax offset for MLS lump sums paid to you

61-580(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

61-580(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 is entitled to a tax offset for the current year under subsection (1); and

(c) *Medicare levy surcharge is payable by you for the current year because of:

(i) section 8D of the Medicare Levy Act 1986 ; or

(ii) Division 4 of Part 3 of the A New Tax System (Medicare Levy Surcharge - Fringe Benefits) Act 1999 ;

(which are about Medicare Levy surcharge for individuals who are married); and

(d) you are not entitled to a tax offset for the current year under subsection (1); and

(e) less of the Medicare levy surcharge referred to in paragraph (c) would be payable by you for the current year if the *MLS lump sums paid to the individual referred to in paragraph (a) were disregarded.