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INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-20 - TAX OFFSETS    View history reference

Division 61 - Generally applicable tax offsets    View history reference

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

Operative provisions

SECTION 61-580  Entitlement to a tax offset  

 View history reference

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;

(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.
 View history reference

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.

[CCH Note: S 61-580(1) will be 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" after "the current year" in para (d)(i), effective 1 July 2018.]

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.


 



This information is provided by CCH Australia Limited. View the disclaimer and notice of copyright.
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