Is Person A an excepted person for the purposes of subsection 102AC(2)(d) of the Income Tax Assessment Act 1936 (ITAA 1936)?
Yes. This ruling applies for the following periods : 1 July 20XX to 30 June 20XX The scheme commences on: 1 July 20XX
Person A is a beneficiary of a trust. The Trust is proposing to make a distribution to Person A for the 20XX income year. Person A's date of birth is XX and they are under the age of 18 years during the relevant period. The applicant provided a medical certificate from a qualified medical practitioner describing Person A's medical condition and associated symptoms which require a regular regime of on-going medical support. Person A's condition is permanent.
Income Tax Assessment Act 1936 Subsection 102AC(2)(d) Social Security Act 1997 Part 2.19
An 'excepted person' is defined in subsection 102AC(2) of the ITAA 1936 which lists several ways a minor can be an 'excepted person'. Under paragraph 102AC(2)(d) of the ITAA 1936, a minor will be an 'excepted person' in relation to a year of income if the Commissioner: (i) has received a certificate issued by a legally qualified medical practitioner certifying that the minor is: (A) a disabled child, or a disabled adult, within the meaning of Part 2.19 of the Social Security Act 1991 ; or (B) a person who has a continuing inability to work within the meaning of Part 2.3 of the Social Security Act 1991 or is permanently blind; and (ii) is satisfied that, on the last day of the year of income, the minor was a person of the kind mentioned in sub-subparagraph (i)(A) or (B); 'Disabled child' is defined in Part 2.19 of the Social Security Act 1991 (SSA) as: disabled child means a person aged under 16 who: (a) has a physical, intellectual, or psychiatric disability; and (b) is likely to suffer from that disability permanently or for an extended period.
You have provided a medical certificate from a qualified medical practitioner certifying that Person A is a child under 16 years and suffer from a medical condition. The medical condition is such that Person A will likely need care and attention either permanently or for an extended period of time. This meets the definition of 'disabled child' under the SSA. The Commissioner is satisfied that Person A is an excepted person under subsection 102AC(2) of the ITAA 1936.