1 Is xx (the Beneficiary 1) a death benefits dependant of xx (the Deceased) according to section 302-195(1)(d) of the Income Tax Assessment Act 1997 (ITAA 1997), due to being a person who was a dependent of the Deceased just before they died? Question 2 : Is xx (Beneficiary 2) a death benefits dependant of xx (the Deceased) according to section 302-195(1)(d) of the Income Tax Assessment Act 1997 (ITAA 1997), due to being a person who was a dependent of the Deceased just before they died?
1: No. Answer 2: No. This private ruling applies for the following period: Income year ending 30 June 20xx 30 June 20xx The scheme commences on: The scheme commences on 1 July 20xx
This private ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are different from these facts, this private ruling has no effect, and you cannot rely on it. The fact sheet has more information about relying on your private ruling. 1. Beneficiary 1 (xx) and Beneficiary 2 (xx) (collectively, "the Beneficiaries") are the adult children of xx (the Deceased person) as indicated in the Will of xx dated xx. 2. The Deceased died on xx, as indicated on the death certificate of the Deceased, dated xx. 3. Beneficiary 1 was born on xx and Beneficiary 2 was born on xx. Both Beneficiaries were therefore older than X years when the Deceased died. 4. The Beneficiaries are named in the Deceased's Will, dated xx, as the Beneficiaries of the balance of the estate once debts, funeral and testamentary expenses are paid for. 5. The Deceased's estate received death benefit payments from xx on xx. No tax was withheld from the payment, confirmed on the withdrawal confirmation dated xx. 6. You applied for a private ruling on xx.
7. In support of your application, you made the following statements: i. The deceased was a xx man who financially assisted his daughters by providing them with secure homes at nominal rent and paid for services such as water. ii. Beneficiary 1 lived in a property owned by the Deceased (xx). iii. Beneficiary 2 lived in a property owned by the Deceased (xx). iv. The Deceased provided the Beneficiaries with reduced rent accommodation, payment of some utilities and occasional groceries. v. The Deceased provided the Beneficiaries with cash on a regular basis to help cover costs. 8. You summarised the support and care provided to the Deceased by the Beneficiaries as follows: 1. Beneficiary 1: i. Moved into one of the Deceased's rental properties xx in xx. ii. Paid market rent of $xx per week from xx. iii. The rent was reduced to $xx in xx. iv. The rent was reduced to $xx in xx. v. Rent was paid in cash and no formal rental agreement was made.
vi. The Beneficiary 1 has had employment for xx years. vii. The Beneficiary 2 has received xx for at least xx years. viii. The Deceased paid rates, water, insurance and Strata fees. 2. Beneficiary 2: i. Moved into one of the Deceased's rental properties xx in xx. ii. Paid reduced rent of $xx per week. iii. The Beneficiary received xx for an unstated period and had some employment since xx. iv. Moved out of xx in xx. v. Moved to the Deceased's granny flat adjoined to his home in xx. vi. No rent was paid by the Beneficiary, and the Deceased paid for utility bills and property maintenance. vii. No formal rental agreement was made, but a xx rental statement was signed by the Deceased in xx. viii. The Beneficiary moved into xx. ix. Paid normal rent of $xx per week until xx, when the rent was reduced to $xx. x. The Deceased assisted the Beneficiary with some medical, travel and shopping money throughout the years.
xi. The Beneficiary assisted the Deceased with xx and mutual xx. During these trips the Deceased would assist the Beneficiary by purchasing some of the Beneficiary's xx, worth $xx per fortnight. This arrangement persisted until the Deceased passed away. xii. The Deceased began providing $xx per week back to the Beneficiary in cash to assist with regular living expenses. xiii. The Deceased provided the Beneficiary's xx with a $xx loan for xx in xx. xiv. The Deceased provided a loan to the Beneficiary with $xx in xx to purchase a xx, but this loan was not repaid. xv. Beneficiary 2 stated the Deceased would purchase a meal for both Beneficiary 1 and Beneficiary 2 at a value of $xx per month during a regular xx. 9. You provided the following documentation in support of your application: i. Rental appraisal of units xx and xx number xx dated xx stating each unit is worth $xx per week. ii. The Deceased's last Will and Testament, dated xx. iii. The Deceased's Death Certificate, dated xx. iv. The Probate, dated xx.
v. A Deceased estate superannuation payment letter, withdrawal notification and PAYG summary for the superannuation lump sum payment year ending xx, dated xx. a. Total Tax Withheld $xx. b. Taxed element $xx. c. Untaxed element $xx. d. Tax free component $xx. e. Death benefit Y. vi. A Deceased estate superannuation payment letter, withdrawal notification and PAYG summary for the superannuation lump sum payment year ending xx, dated xx. a. Total Tax Withheld $xx. b. Taxed element $xx. c. Untaxed element $xx. d. Tax free component $xx. e. Death benefit xx, trustee of deceased estate. vii. A transaction record without identifying features for xx to xx. viii. An xx Binding Death Benefit nomination form for the xx nominating Beneficiary 1 and Beneficiary 2 at xx% share each, dated xx. ix. A Subdivision of xx on xx for xx dated xx advising that Lot xx was split into Lot xx xx (house) and Lot xx- xx. x. xx bank statements for the xx:
a. xx through xx showing a handwritten note regarding a withdrawal of $xx on xx 'xx. b. xx through xx. c. xx through xx. d. xx through xx. e. xx through xx showing a xx payment of $xx with a handwritten note 'xx' on xx. f. xx - xx, with handwritten notes beside xx payments on xx 'xx'. g. xx through xx. h. xx through xx. i. A transaction record with no account name for xx through xx. j. A List of Transactions for xx for xx through xx. xi. xx bank statements for the Deceased's 'xx' account: a. xx through xx, b. xx through xx with two cheques and a handwritten note as being 'xx' on xx. c. xx through xx. d. xx through xx. e. xx through xx. f. xx through xx. g. xx through xx. h. xx through xx. i. xx through xx. j. xx through xx. k. xx through xx. l. xx through xx. m. xx through xx. n. a transaction record for xx through xx. xii. xx bank statements for the Deceased's xx account:
a. xx through xx showing three xx payments on xx with two stated as being Beneficiary 1 and Beneficiary 2, and b. xx through xx. xiii. A page from a xx bank account without any identifying features with a handwritten note regarding a xx payment on xx (no year) 'xx'. 10. Beneficiary 1 provided the following documentation in support of the application: i. Six pay slips for Beneficiary 1 for the xx income year from xx, totalling $xx with an annual salary of $xx. ii. Income statements for Beneficiary 1 for the income years ending 30 June: a. xx - Gross payments of $xx b. xx - Gross payments of $xx. c. xx - Gross payments of $xx. d. xx - Gross payments of $xx. e. xx - Gross payments of $xx. f. xx - Gross payments of $xx. iii. A xx bank transaction record for xx for the period xx through xx. iv. xx invoices for xx dated: a. xx. b. xx. c. xx. v. Payslips provided show Beneficiary 1 received other income from xx.
11. Beneficiary 2 provided the following documentation in support of the application: i. xx medical certificate information for Beneficiary 2 for xx, xx and xx requested xx. ii. A xx job history web page print out for Beneficiary 2 showing they worked at xx between xx and xx, and includes other employment in prior years. iii. xx bank statements for the xx account for all periods between xx through xx. a. A payment on xx for the xx through xx period contains a handwritten note on the document as a credit for 'xx'. (Handwritten note not shown on originals.) b. For the period xx through xx a deposit of $xx is shown with a handwritten note on xx regarding the Deceased's withdrawal of $xx. (Handwritten note not shown on originals.) iv. Tax return information for Beneficiary 2 for the income years ending 30 June: a. xx - taxable income of $xx. b. xx - taxable income of $xx. c. xx - taxable income of $xx. d. xx - taxable income of $xx. e. xx - taxable income of $xx. v. Water invoices for xx dated: a. xx.
b. xx. c. xx. vi. Income statements provided show Beneficiary 2 received xx payments for the xx income year.
Income Tax Assessment Act 1997 section 302-195 Income Tax Assessment Act 1997 section 302-200 Income Tax Assessment Act 1997 subsection 995-1(1) Income Tax Assessment (1997 Act) Regulations 2021 section 302-200.01 Income Tax Assessment (1997 Act) Regulations 2021 section 302-200.02 Our commitments to you For information about our commitments to you and what we ask of you, go to ato.gov.au/atocharter Yours sincerely, Reason for decision Question 1 : Is xx (the Beneficiary 1) a death benefits dependant of xx (the Deceased) according to section 302-195(1)(d) of the Income Tax Assessment Act 1997 (ITAA 1997), due to being a person who was a dependent of the Deceased just before they died? Question 2 : Is xx (Beneficiary 2) a death benefits dependant of xx (the Deceased) according to section 30