Tax Laws Amendment (2009 Measures No. 1) Act 2009 (27 of 2009)

Schedule 3   Reforms to income tests

Part 3   Amendment of income tests

Income Tax Assessment Act 1936

43   Subsections 160AAAB(4) and (5)

Repeal the subsections, substitute:

(4) If the beneficiary is not the spouse of another person, the amount applicable to the beneficiary under subsection (3) is the amount that would be the beneficiary’s rebate income for the year of income if the beneficiary’s taxable income for that year were the beneficiary’s share of the net income of the trust estate.

(5) If the beneficiary is the spouse of another person, the amount applicable to the beneficiary under subsection (3) is half the sum of:

(a) the amount that would be applicable to the beneficiary under subsection (3) if the beneficiary were not the spouse of another person; and

(b) the beneficiary’s spouse’s rebate income for the year of income (reduced by any amount included in the spouse’s assessable income under section 100); and

(c) any share of the net income of a trust estate to which the beneficiary’s spouse is presently entitled and that is assessed under section 98.