Issue
Is a taxpayer entitled to receive a refund of the superannuation pension rebate/tax offset where it exceeds the amount of income tax otherwise payable?
Decision
No. The sum of the rebates/tax offsets allowable to a taxpayer can only reduce the amount of income tax otherwise payable by the taxpayer to nil
Facts
The taxpayer received a rebatable superannuation pension for a financial year.
The amount of tax rebates/offsets was greater than the amount of tax payable on the taxable income for the financial year.
Reasons for Decision
Pursuant to section 4-10(3) of the Income Tax Assessment Act 1997 (ITAA 1997); and section 160AD of the Income Tax Assessment Act 1936 (ITAA 1936). The sum of tax rebates/offsets allowable to a taxpayer can only reduce the amount of income tax otherwise payable by the taxpayer to nil. If the sum of the tax rebates/offsets exceeds the amount of income tax otherwise payable, the taxpayer is not entitled to a refund of the excess amount.