Self-funded retirees supplementary bonus - eligibility - taxpayer of age pension age on 1 July 2000

Does the taxpayer qualify under subsection 41(2) 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)?

Yes, the taxpayer qualifies under subsection 41(2) of the BOA Act for the 'self-funded retirees supplementary bonus component' of the SBOA.

The taxpayer was of age pension age and an Australian resident on 1 July 2000. For the 1999-2000 income year: • the taxpayer's taxable income was less than $30 000 • the taxpayer had adjusted savings and investment income of more than $1000.

The taxpayer did not receive a disqualifying payment at any time during or in respect of the period commencing 1 April 2000 and ending 30 June 2000.

Applying the taxpayer's taxable income to the formula contained in subsection 45(5) of the BOA Act, the amount of the 'self-funded retirees supplementary bonus component' of the SBOA is calculated to be greater than nil.

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. A taxpayer will qualify for the bonus provided the following tests are met: (a) on 1 July 2000, he is aged 65 or more or she is aged 61.5 or more; and (b) he or she is an Australian resident on 1 July 2000; and (c) his or her taxable income as shown in his or her assessment for the qualifying year, or for either or each of the qualifying years, is less than $30 000, and he or she has adjusted savings and investment income of more than $1000, for that year or those years; and (d) at least one of the following applies: (i) he or she did not receive a disqualifying payment at any time during the period from the start of 1 April 2000 until the end of 30 June 2000; (ii) he or she received a disqualifying payment during the period from the start of 1 April 2000 until the end of 29 June 2000, his or her partner died during that period and he or she is not receiving a disqualifying payment on 30 June 2000; (iii) he or she received a disqualifying payment during the period from the start of 1 April 2000 until the end of 30 June 2000 in a circumstance prescribed by the regulations for the purposes of this subparagraph; and (e) the amount of the self-funded retirees supplementary bonus component, worked out under subsection 45(5), is greater than nil.

The taxpayer satisfies the above tests and therefore qualifies for the 'self-funded retirees supplementary bonus component' of the SBOA.