Income Tax Assessment Act 1936

Subject to subsection 160AAA(4), a taxpayer who is an individual (other than in the capacity as trustee) is entitled to a rebate of tax in the taxpayer’s assessment in respect of income of a year of income of an amount (if any), ascertained in accordance with the regulations, if the taxpayer satisfies the conditions in subsections (2) and (3).

The first condition is that:

on at least one day during the year of income, the taxpayer:

is eligible for a pension, allowance or benefit under the Veterans’ Entitlements Act 1986; and

has reached pension age, within the meaning of that Act; and

is not in gaol; or

on at least one day during the year of income, the taxpayer:

is qualified for an age pension under the Social Security Act 1991; and

is not in gaol; or

the assessable income of the taxpayer of the year of income includes an amount of:

social security pension or education entry payment (within the meaning of the Social Security Act 1991); or

service pension, carer service pension or income support supplement under the Veterans’ Entitlements Act 1986;

The second condition is that the taxpayer’s rebate income for the year of income is less than an amount ascertained in accordance with the regulations.

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

the taxpayer’s rebate income for the year of income; and

the taxpayer’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

an amount in respect of which a trustee of a trust estate is liable to be assessed (and pay tax) under section 98 in respect of the taxpayer’s spouse.

Regulations made for the purposes of this section may be expressed to apply in relation to a year of income any part of which occurred before the notification of the regulations.