Commonwealth Consolidated Acts

TAX LAWS AMENDMENT (2010 MEASURES NO. 3) ACT 2010 - SCHEDULE 4

Income Tax Assessment Act 1936

1   Subsection   6(1)

Insert:

"principal beneficiary" of a special disability trust has the same meaning as in the Income Tax Assessment Act 1997 .

2   Subsection   6(1)

Insert:

"special disability trust" has the same meaning as in the Income Tax Assessment Act 1997 .

3   After section   95AA

Insert:

95AB   Modifications for special disability trusts

  (1)   This Division applies with the modifications set out in this section in relation to a year of income in relation to a trust estate that is a special disability trust at the end of the year of income.

  (2)   Treat the principal beneficiary of the trust estate as being presently entitled to all of the income of the trust estate of the year of income.

  (3)   If the principal beneficiary of the trust estate is a resident of Australia at the end of the year of income treat that person as being under a legal disability throughout the year of income.

  (4)   If there is no income of the trust estate assume that:

  (a)   there is income of the trust estate of the year of income; and

  (b)   the principal beneficiary of the trust estate is presently entitled to all of the income of the trust estate of the year of income.

  (5)   If the amount to be deducted under subsection   100(2) from the income tax assessed against the principal beneficiary is greater than the amount of the income tax assessed against the principal beneficiary, the Commissioner must pay to the principal beneficiary an amount equal to the difference between those 2 amounts.

Note:   The tax offset is subject to the refundable tax offset rules: see section   67 - 23 of the Income Tax Assessment Act 1997 .

4   After paragraph   102AC(2)(d)

Insert:

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

Income Tax Assessment Act 1997

5   Section   67 - 23 (before table item   5)

Insert:

6   Subsection   995 - 1(1)

Insert:

"principal beneficiary" of a special disability trust has the meaning given by section   1209M of the Social Security Act 1991 .

7   Subsection   995 - 1(1)

Insert:

"special disability trust" has the meaning given by section   1209L of the Social Security Act 1991 .

8   Application provision

The amendments made by this Schedule apply to assessments for the 2008 - 09 income year and later income years.