Issue
Does a taxpayer, who received a disqualifying payment from Centrelink during the 1999-2000 income year, qualify under subsection 41(3) of the A New Tax System (Bonuses for Older Australians) Act 1999 (BOA Act) for the 'self-funded retirees supplementary bonus component' of the savings bonus for older Australians (SBOA)?
Decision
No. A taxpayer does not qualify under subsection 41(3) of the BOA Act for the 'self-funded retirees supplementary bonus component' of the SBOA where they received a disqualifying payment during the 1999-2000 income year.
Facts
The taxpayer received income support payments from Centrelink in respect of the 1999-2000 income year. The taxpayer is aged between 55 and age pension age. History note: The sentence "The taxpayer is aged between 55 and age pension age." has been added to the above paragraph
Reasons For Decision
To qualify for the 'self-funded retirees supplementary bonus component' of the SBOA a taxpayer must satisfy, among other matters, certain age, residency and income conditions set out in subsection 41(3) of the BOA Act .
Under paragraph 41(3)(e), a taxpayer will not qualify for the bonus component if he or she at any time during the 1999-2000 income year received a disqualifying payment
A disqualifying payment is defined in section 34 of the BOA Act and includes social security pensions and benefits, service pensions and income support supplements. The taxpayer's income support payments from Centrelink are disqualifying payments.
As the taxpayer received a disqualifying payment during the 1999-2000 income year he or she does not qualify for the 'self-funded retirees supplementary bonus component' of the SBOA.