Income Tax Assessment Act 1936

PART III - LIABILITY TO TAXATION  

Division 6AA - Income of certain children  

SECTION 102AC   PERSONS TO WHOM DIVISION APPLIES  

102AC(1)   [Prescribed person]  

For the purposes of this Division, a person is a prescribed person in relation to a year of income if:

(a) the person is less than 18 years of age on the last day of the year of income; and

(b) the person is not an excepted person in relation to the year of income.

102AC(2)   [Excepted person]  

Subject to this section, a person (in this subsection referred to as the minor ) is an excepted person in relation to a year of income for the purposes of this Division if, and only if:

(a) (Omitted by No 135 of 1990)

(b) the minor was engaged in a full-time occupation on the last day of the year of income;

(c) the minor is a person:

(i) in respect of whom a carer allowance under the Social Security Act 1991 was payable in respect of a period that included the last day of the year of income; or

(ii) to whom a disability support pension under that Act was payable in respect of a period that included the last day of the year of income; or

(iii) (Repealed by No 33 of 2010)

(d) the Commissioner:

(i) has received a certificate issued by a legally qualified medical practitioner certifying that the minor is:

(A) a disabled child, or a disabled adult, within the meaning of Part 2.19 of the Social Security Act 1991 ; or

(B) a person who has a continuing inability to work within the meaning of Part 2.3 of the Social Security Act 1991 or is permanently blind; and

(ii) is satisfied that, on the last day of the year of income, the minor was a person of the kind mentioned in sub-subparagraph (i)(A) or (B);

(da) the minor is the principal beneficiary of a special disability trust;

(e) a double orphan pension was payable in respect of the minor under the Social Security Act 1991 in respect of a period that included the last day of the year of income;

(f) but for section 1003 of the Social Security Act 1991 , a double orphan pension would have been payable in respect of the minor under that Act in respect of a period that included the last day of the year of income; or

(g) the Commissioner:

(i) has received a certificate issued by a legally qualified medical practitioner certifying that the minor is a person who, by reason of a permanent disability, is unlikely to be able to engage in a full-time occupation; and

(ii) is satisfied that, on the last day of the year of income, the minor was such a person.

102AC(3)   [Interpretation - subsection (2)(e) and (f)]  

Where:

(a) a double orphan pension was payable, or would, but for section 1003 of the Social Security Act 1991 , have been payable, in respect of a person under that Act in respect of a period during a year of income, being a period that included the last day of the year of income; and

(b) during the whole of the period referred to in paragraph (a), the person was wholly or substantially dependent for support on a relative or relatives of the person,

that person shall not be taken by virtue of paragraph (2)(e) or (f) to be an excepted person in relation to the year of income.

102AC(4)   [Interpretation - subsection (2)(g)]  

Where:

(a) the Commissioner is of the opinion that, during a period during a year of income, being a period that included the last day of the year of income, a person was a person who, by reason of a permanent disability, was unlikely to be able to engage in a full-time occupation; and

(b) during the whole of the period referred to in paragraph (a), the person was wholly or substantially dependent for support on a relative or relatives of the person;

that person shall not be taken, by virtue of paragraph (2)(g), to be an excepted person in relation to the year of income.

102AC(5)   [Wholly or substantially dependent for support]  

For the purposes of subsections (3) and (4), a person shall be taken to have been wholly or substantially dependent for support on a relative or relatives of the person during any period during which that person resided with a relative or relatives of the person unless the contrary is established to the satisfaction of the Commissioner.

102AC(6)   [Full-time occupation]  

Subject to this section, a person shall be taken, for the purposes of subsection (2), to have been engaged in a full-time occupation on the last day of a year of income if, and only if:

(a) the person was, on the last day of the year of income, a person engaged in a full-time occupation; or

(b) in a case to which paragraph (a) does not apply - the person was engaged in a full-time occupation during the year of income for a period of not less than 3 months or for periods the aggregate of which is not less than 3 months.

102AC(7)   [Full-time education during income year]  

Where:

(a) during a period during a year of income, a person was engaged in a full-time occupation; and

(b) during the year of income and after the expiration of that period, the person was engaged in a course of full-time education at a school, college, university or similar institution,

no regard shall be had to that period in determining whether the person is to be taken, by virtue of paragraph (6)(b), to have been engaged in a full-time occupation on the last day of the year of income.

102AC(8)   [Commissioner ' s discretion]  

A person shall not be taken to have been engaged in a full-time occupation on the last day of a year of income unless the Commissioner is satisfied that, on that day:

(a) the person had the intention of engaging in a full-time occupation or full-time occupations during the whole or a substantial part of the next succeeding year of income; and

(b) the person did not have the intention of engaging in a course of full-time education at a school, college, university or similar institution at any time during the next succeeding year of income.