Issue
Does a taxpayer, who does not have any adjusted savings and investment income, qualify under subsection 41(1) of the A New Tax System (Bonuses for Older Australians) Act 1999 (BOA Act) for the 'aged persons savings bonuses component' of the savings bonus for older Australians (SBOA)?
Decision
No. A taxpayer who does not have any adjusted savings and investment income does not qualify under subsection 41(1) of the BOA Act for the 'aged persons savings bonuses component' of the SBOA.
Facts
The taxpayer does not have any adjusted savings and investment income. The taxpayer's savings and investment expenses exceed his or her savings and investment income.
Reasons for Decision
The taxpayer's eligibility for the 'aged persons savings bonus component' of the SBOA is determined under subsection 41(1) of the BOA Act .
Paragraph 41(1)(c) provides that to qualify for the 'aged persons savings bonus component' the taxpayer must have some adjusted savings and investment income in the 1998 - 1999 or 1999 - 2000 income year (or both).
Adjusted savings and investment income is defined in section 35 of the BOA Act. That section provides that adjusted savings and investment income is generally the total of savings and investment income and other non salary and wage earnings, less any deductions that relate to that income.
As the taxpayer's savings and investment expenses exceed their savings and investment income, the taxpayer does not have any 'adjusted savings and investment income' and so does not qualify for the 'aged persons savings bonus component' of the SBOA.