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Is the taxpayer, who has been a resident of Australia for social security (Centrelink) purposes for less than 10 years, eligible for a Senior Australian Tax Offset (SATO) under section 160AAAA of the Income Tax Assessment Act 1936 (ITAA 1936)?

No, the taxpayer, who has been a resident of Australia for social security (Centrelink) purposes for less than 10 years, is not eligible for a SATO under section 160AAAA of the ITAA 1936.

The taxpayer has been an Australian resident for social security (Centrelink) purposes for less than 10 years.

The taxpayer does not have qualifying Australian residence, and does not have a qualifying residence exemption.

To qualify for a SATO a taxpayer must satisfy certain age, residency and income conditions set out in section 160AAAA of the ITAA 1936. The residency condition, contained in subsection 160AAAA(2), requires that the taxpayer be an Australian resident for age pension purposes (generally, has been a resident of Australia for social security purposes for 10 years).

If the taxpayer has been an Australian resident for less than 10 years they may still be considered to have been a resident for age pension purposes, within the meaning of the Social Security Act 1991 , if they have qualifying Australian residence (for example, if they are covered by a Social Security International Agreement) or have a qualifying residence exemption for an age pension (for example, if they qualify as a refugee).

The taxpayer has been a resident of Australia for social security purposes for less than 10 years, and has neither qualifying Australian residence nor a qualifying residence exemption for an age pension. The taxpayer therefore does not satisfy the residency condition and so will not be entitled to a SATO.