Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 61.580

Tax offset for MLS lump sums paid to you

  (1)   You are entitled to a * tax offset for the * current year if:

  (a)   you are an individual; and

  (b)   * Medicare levy surcharge is payable by you for the current year because of:

  (i)   section   8B, 8C or 8D of the Medicare Levy Act 1986 ; or

  (ii)   the A New Tax System (Medicare Levy Surcharge--Fringe Benefits) Act 1999 ; and

  (c)   your assessable income or * exempt foreign employment income for the current year includes one or more * MLS lump sums paid to you; and

  (d)   the total of the MLS lump sums paid to you is greater than or equal to one - eleventh of the total of the following amounts:

  (i)   your normal taxable income (within the meaning of section   159ZR of the Income Tax Assessment Act 1936 ) for the current year, disregarding your * assessable FHSS released amount for the current year;

  (ii)   your exempt foreign employment income for the current year;

  (iii)   your * reportable fringe benefits total for the current year;

  (iv)   the amounts that would be included in your assessable income for the current year if, and only if, subsection   271 - 105(1) (family trust distribution tax) in Schedule   2F to the Income Tax Assessment Act 1936 were ignored;

  (v)   your * reportable superannuation contributions for the current year;

  (vi)   your * total net investment loss for the current year.

Note:   The test in paragraph   (d) is similar to the 10% test in paragraph   159ZRA(1)(b) of the Income Tax Assessment Act 1936 , which also deals with a tax offset for lump sum payments in arrears.

Tax offset for MLS lump sums paid to your spouse

  (2)   You are also entitled to a * tax offset for the * current year if:

  (a)   during all or part of the current year, you were married to an individual (within the meaning of section   3 of the Medicare Levy Act 1986 or section   7 of the A New Tax System (Medicare Levy Surcharge--Fringe Benefits) Act 1999 ); and

  (b)   the individual is entitled to a tax offset for the current year under subsection   (1); and

  (c)   * Medicare levy surcharge is payable by you for the current year because of:

  (i)   section   8D of the Medicare Levy Act 1986 ; or

  (ii)   Division   4 of Part   3 of the A New Tax System (Medicare Levy Surcharge--Fringe Benefits) Act 1999 ;

    (which are about Medicare Levy surcharge for individuals who are married); and

  (d)   you are not entitled to a tax offset for the current year under subsection   (1); and

  (e)   less of the Medicare levy surcharge referred to in paragraph   (c) would be payable by you for the current year if the * MLS lump sums paid to the individual referred to in paragraph   (a) were disregarded.