Issue
Does a taxpayer, who does not have any adjusted savings and investment income, qualify under subsection 41(2) of the A New Tax System (Bonuses for Older Australians) Ac t 1999 (BOA Act) for the 'self-funded retirees supplementary bonus 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(2) of the BOA Act for the 'self-funded retirees supplementary bonus 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. The taxpayer is of age pension age. History note: The sentence "The taxpayer is of age pension age." has been added to the above paragraph
Reasons For Decision
The taxpayer's eligibility for the 'self-funded retirees supplementary bonus component' of the SBOA is determined under subsection 41(2) of the BOA Act.
Paragraph 41(2)(c) of this subsection requires the taxpayer to have adjusted savings and investment income of more than $1,000 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 'self-funded retirees supplementary bonus component' of the SBOA.