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INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION

PART 2-20 - TAX OFFSETS

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History Pt 2-20 inserted by No 56 of 1997.

Division 61 - Generally applicable tax offsets

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History Div 61 inserted by No 56 of 1997.

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

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History Subdiv 61-L inserted by No 80 of 2006 , s 3 and Sch 6 item 4, effective 30 June 2006.

Operative provisions

SECTION 61-580  Entitlement to a tax offset

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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.

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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.

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History S 61-580(1) amended by No 132 of 2017, s 3 and Sch 1 item 28, by inserting " , disregarding your *assessable FHSS released amount for the current year " in para (d)(i), effective 1 July 2018. S 61-580(1) amended by No 27 of 2009, s 3 and Sch 3 item 45, by inserting para (d)(v) and (vi), applicable in relation to income years starting on or after 1 July 2009.

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 ;

(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.

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History S 61-580 inserted by No 80 of 2006 , s 3 and Sch 6 item 4, effective 30 June 2006.