INCOME TAX ASSESSMENT ACT 1997 (ARCHIVE)

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-20 - TAX OFFSETS  

Division 61 - Generally applicable tax offsets  

Subdivision 61-G - Private health insurance offset complementary to Private Health Insurance Incentives Act 1997  

Operative provisions

SECTION 61-315 (ARCHIVE)   Priority between different taxpayers  

61-315(1)    
This section establishes the priority of entitlements to the *tax offset if more than one person would, apart from paragraph 61-305(3)(b) , be entitled to the tax offset in respect of the same premiums paid under a private health insurance policy (within the meaning of the Private Health Insurance Incentives Act 1997 ).

Note:

See paragraph 61-305(3)(b) for the significance of priority of entitlements.

61-315(2)    
All of the persons who would, apart from paragraph 61-305(3)(b) , be entitled to the *tax offset in respect of those premiums may make an agreement (a priority agreement ) in respect of the income year specifying one of them as the person whose entitlement is to have priority.

Note:

Section 61-320 contains further provisions about priority agreements.

61-315(3)    
That person's entitlement in respect of those premiums has priority over the entitlements of all of the others.

61-315(4)    
If:

(a) a *priority agreement is not made in respect of the income year; and

(b) one of the persons who would, apart from paragraph 61-305(3)(b) , be entitled to the *tax offset in respect of those premiums has made payments in respect of those premiums; and

(c) another of the persons who would, apart from paragraph 61-305(3)(b) , be entitled to the tax offset in respect of those premiums has not made payments in respect of those premiums;

the entitlement of the person who made those payments has priority over the entitlement of the person who has not.

61-315(5)    
If:

(a) a *priority agreement is not made in respect of the income year; and

(b) none of the persons who would, apart from paragraph 61-305(3)(b) , be entitled to the *tax offset in respect of those premiums has made payments in respect of those premiums;

the entitlement of the contributor in respect of the private health insurance policy has priority over the entitlement of each person other than the contributor.

61-315(6)    
In subsection (5):

contributor
means the person who is treated as the contributor by the health fund (within the meaning of the Private Health Insurance Incentives Act 1997 ) that issued the private health insurance policy.

61-315(7)    
Despite paragraph 61-305(3)(b) and subsections (3), (4) and (5) of this section, the entitlement to the *tax offset of either of the following persons in respect of those premiums:

(a) a trustee who is liable to be assessed under section 98 of the Income Tax Assessment Act 1936 in respect of a share of the net income of a trust estate;

(b) the beneficiary who is presently entitled to the share of the income of the trust estate;

is not affected by the other person's entitlement to the tax offset in respect of those premiums having priority.