Issue
Is a taxpayer entitled under section 45 of the A New Tax System (Bonuses for Older Australians) Act 1999 (BOA Act) for an 'aged persons savings bonuses component' of the savings bonus for older Australians (SBOA) in excess of their adjusted savings and investment income?
Decision
No, a taxpayer is not entitled under section 45 of the BOA Act for an 'aged persons savings bonuses component' of the SBOA in excess of their adjusted savings and investment income.
Facts
The taxpayer satisfies the age, residency and income conditions under subsection 41(1) of the BOA Act.
Reasons for Decision
To qualify for the 'aged persons savings bonus component' of the SBOA a taxpayer must satisfy certain age, residency and income conditions set out in subsection 41(1) of the BOA Act. If a taxpayer is qualified for the bonus component, the amount of bonus they are entitled to is calculated under the provisions of section 45 of the BOA Act.
The taxpayer satisfies the relevant conditions contained in subsection 41(1) of the BOA Act and therefore qualifies for the 'aged persons savings bonus component' of the SBOA.
Subsection 45(4) provides that the amount of the bonus payment cannot exceed: • $1000, or • the amount of the taxpayer's adjusted savings and investment income. A taxpayer's actual entitlement depends upon their taxable income and reduces from the above limits when that income exceeds $20 000.
A taxpayer's actual entitlement depends upon their taxable income and reduces from the above limits when that income exceeds $20,000.