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INCOME TAX LAWS AMENDMENT ACT 1980 No. 19 of 1980 - SECT 16
Interpretation
16. (1) After section 102 of the Principal Act the following Division is
inserted:
"Division 6AA-Income of certain children
"102AA. (1) In this Division, unless the contrary intention appears-
'agreement' means any agreement, arrangement, understanding or scheme, whether
formal or informal, whether express or implied and whether or not enforceable,
or intended to be enforceable, by legal proceedings; 'occupation' includes any
office, employment, trade, business, profession, vocation or calling, but does
not include a course of education at a school, college, university or similar
institution; 'property' means any property, whether real or personal, and
includes money.
"(2) In this Division-
(a) a reference to the derivation by a person of assessable income shall
be read as including a reference to the inclusion of an amount in the
assessable income of the person; and
(b) a reference to the derivation by a person of any assessable income
from particular property shall be read as including a reference to the
inclusion of an amount in the assessable income of the person in
respect of that property.
"(3) In this Division, a reference to the share of a beneficiary of the net
income of a trust estate shall be read as a reference to a share of the
beneficiary of the net income of a trust estate-
(a) that is included in the assessable income of the beneficiary under
section 97 or 100; or
(b) in respect of which the trustee of the trust estate is liable to be
assessed and to pay tax in pursuance of section 98.
"(4) A reference in this Division to income that is derived from particular
property shall be read as including a reference to income that is derived from
property that, in the opinion of the Commissioner, represents that property.
Application of Division
"102AB. This Division applies in relation to the year of income that commenced
on 1 July 1979 and in relation to all subsequent years of income. Persons to
whom Division applies
"102AC. (1) For the purposes of this Division, a person is a prescribed person
in relation to a year of income if-
(a) the person is less than 18 years of age on the last day of the year of
income; and
(b) the person is not an excepted person in relation to the year of
income.
"(2) Subject to this section, a person (in this sub-section referred to as the
'minor') is an excepted person in relation to a year of income for the
purposes of this Division if, and only if-
(a) the minor was a married person on the last day of the year of income;
(b) the minor was engaged in a full-time occupation on the last day of the
year of income;
(c) a handicapped child's allowance or an invalid pension was payable in
respect of the minor under the Social services Act 1947 in respect of
a period that included the last day of the year of income;
(d) the Commissioner-
(i) has received a certificate issued by a legally qualified
medical practitioner certifying that the minor is-
(A) a handicapped child, or a severely handicapped child,
within the meaning of Part VIB of the Social Services Act
1947; or
(B) a person who is permanently incapacitated for work within
the meaning of Division 3 of Part III of the Social
Services Act 1947 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 clause (A) or (B)
of sub-paragraph (i);
(e) a double orphan's pension was payable in respect of the minor under
the Social Services Act 1947 in respect of a period that included the
last day of the year of income;
(f) but for sub-section (2) of section 105B of the Social Services Act
1947, a double orphan's pension would have been payable in respect of
the minor under that Act in respect of a period that included the last
day of the year of income; or
(g) the Commissioner-
(i) has received a certificate issued by a legally qualified
medical practitioner certifying that the minor is a person who,
by reason of a permanent disability, is unlikely to be able to
engage in a full-time occupation; and
(ii) is satisfied that, on the last day of the year of income, the
minor was such a person.
"(3) Where-
(a) a double orphan's pension was payable, or would, but for sub- section
(2) of section 105B of the Social Services Act 1947, have been
payable, in respect of a person under that Act in respect of a period
during a year of income, being a period that included the last day of
the year of income; and
(b) during the whole of the period referred to in paragraph (a), the
person was wholly or substantially dependent for support on a relative
or relatives of the person, that person shall not be taken by virtue
of paragraph (e) or (f) of sub- section (2) to be an excepted person
in relation to the year of income.
"(4) Where-
(a) the Commissioner is of the opinion that, during a period during a year
of income, being a period that included the last day of the year of
income, a person was a person who, by reason of a permanent
disability, was unlikely to be able to engage in a fulltime
occupation; and
(b) during the whole of the period referred to in paragraph (a), the
person was wholly or substantially dependent for support on a relative
or relatives of the person, that person shall not be taken, by virtue
of paragraph (g) of sub-section (2), to be an excepted person in
relation to the year of income.
"(5) For the purposes of sub-sections (3) and (4), a person shall be taken to
have been wholly or substantially dependent for support on a relative or
relatives of the person during any period during which that person resided
with a relative or relatives of the person unless the contrary is established
to the satisfaction of the Commissioner.
"(6) Subject to this section, a person shall be taken, for the purposes of
sub-section (2), to have been engaged in a full-time occupation on the last
day of a year of income if, and only if-
(a) the person was, on the last day of the year of income, a person
engaged in a full-time occupation; or
(b) in a case to which paragraph (a) does not apply-the person was engaged
in a full-time occupation during the year of income for a period of
not less than 3 months or for periods the aggregate of which is not
less than 3 months.
"(7) Where-
(a) during a period during a year of income, a person was engaged in a
full-time occupation; and
(b) during the year of income and after the expiration of that period, the
person was engaged in a course of full-time education at a school,
college, university or similar institution, no regard shall be had to
that period in determining whether the person is to be taken, by
virtue of paragraph (b) of sub-section (6), to have been engaged in a
full-time occupation on the last day of the year of income.
"(8) A person shall not be taken to have been engaged in a full-time
occupation on the last day of a year of income unless the Commissioner is
satisfied that, on that day-
(a) the person had the intention of engaging in a full-time occupation or
full-time occupations during the whole or a substantial part of the
next succeeding year of income; and
(b) the person did not have the intention of engaging in a course of
full-time education at a school, college, university or similar
institution at any time during the next succeeding year of income.
Taxable income to which Division applies
"102AD. The eligible taxable income of a year of income of a person who is a
prescribed person in relation to the year of income is the amount (if any)
remaining after deducting from the eligible assessable income of the person of
the year of income-
(a) any deductions allowable to the person in relation to the year of
income that relate exclusively to that eligible assessable income;
(b) so much of any other deductions (other than apportionable deductions)
allowable to the person in relation to the year of income as, in the
opinion of the Commissioner, may appropriately be related to that
eligible assessable income; and
(c) the amount that bears to the apportionable deductions allowable to the
person in relation to the year of income the same proportion as the
amount that, but for this paragraph, would be the eligible taxable
income of the person of the year of income bears to the sum of-
(i) the taxable income of the person of the year of income; and
(ii) the apportionable deductions allowable to the person in
relation to the year of income. Eligible assessable income
"102AE. (1) For the purposes of this Division, the eligible assessable income
of a year of income of a person is so much of the assessable income of the
person of the year of income as is not excepted assessable income.
"(2) Subject to this section, an amount included in the assessable income of a
person (in this sub-section referred to as the 'minor') is excepted assessable
income to the extent to which the amount-
(a) is employment income or business income;
(b) is derived by the minor from the investment of any property
transferred to the minor-
(i) by way of, or in satisfaction of a claim for, damages in
respect of-
(A) loss by the minor of parental support; or
(B) personal injury to the minor, any disease suffered by the
minor or any impairment of the minor's physical or mental
condition;
(ii) pursuant to any law relating to worker's compensation;
(iii) pursuant to any law relating to the payment of compensation in
respect of criminal injuries;
(iv) directly as the result of the death of another person and under
the terms of a policy of life assurance;
(v) directly as the result of the death of another person and out
of a provident, benefit, superannuation or retirement fund;
(vi) directly as the result of the death of another person by an
employer of the deceased person;
(vii) out of a public fund established and maintained exclusively for
the relief of persons in necessitous circumstances; or
(viii) pursuant to-
(A) a decree or order of dissolution or annulment of
marriage, being a dissolution or annulment that, by
reason of the Family Law Act 1975, has effect, or
continues to have effect, in Australia or is recognized
as valid in Australia; or
(B) a decree or order of judicial separation or a similar
decree or order;
(c) is derived by the minor from the investment of any property-
(i) that devolved upon the minor from the estate of a deceased
person;
(ii) that was transferred to the minor by another person out of
property that devolved upon that other person from the estate
of a deceased person and was so transferred within 3 years
after the date of the death of the deceased person; or
(iii) that was acquired by the minor as the beneficial owner of a
verifiable prize in a legally authorized and conducted lottery;
(d) not being business income, is included in the assessable income of the
minor under section 92;
(e) is included in the assessable income of the minor under section 97 or
100; or
(f) is derived by the minor from the investment of any property that, in
the opinion of the Commissioner, represents accumulations of-
(i) excepted assessable income derived by the minor during a year
of income in relation to which this Division applies;
(ii) assessable income derived by the minor during a year of income
in relation to which this Division does not apply, being
assessable income that would, in the opinion of the
Commissioner, have been excepted assessable income if this
Division were applicable in relation to the year of income
during which the assessable income was derived; or
(iii) exempt income derived by the minor to which subparagraph (i) or
(ii) would, in the opinion of the Commissioner, apply if that
exempt income had been assessable income.
"(3) A reference in paragraph (d) of sub-section (2) to an amount (not being
business income) that is included in the assessable income of a person under
section 92 in respect of the individual interest of the person in the net
income of a partnership shall be read as a reference to so much of an amount
so included in that assessable income as, in the opinion of the Commissioner,
is attributable to so much of the assessable income of the partnership as
would, in the opinion of the Commissioner, have been excepted assessable
income if the assessable income of the partnership had been derived by that
person.
"(4) A reference in paragraph (e) of sub-section (2) to an amount included in
the assessable income of a person under section 97 or 100 shall be read as not
including a reference to any part to which this Division applies of an amount
included in that assessable income under either of those sections.
"(5) Subject to sub-sections (6) and (7), a reference in paragraph (a) of
sub-section (2), in relation to a person (in this sub-section referred to as
the 'minor'), to business income shall, in relation to any business income
derived by the minor during a year of income from the carrying on of a
business, be read as a reference to-
(a) in a case where during the year of income, the business was carried on
by the minor either alone or in partnership with another person who
was, or other persons each of whom was, under the age of 18 years on
the first day of the year of income- so much of that business income
as the Commissioner considers fair and reasonable having regard to-
(i) the extent to which, during the year of income, the minor had
the real and effective conduct and control of the business and
participated in the operations and activities of the business;
(ii) the extent to which the minor had the real and effective
control over the disposal of income derived by the minor from
the business during the year of income;
(iii) the extent to which the capital of the business consisted of
property contributed by the minor, being property the income
from which would, in the opinion of the Commissioner, be
excepted assessable income in relation to the minor; and
(iv) such other matters (if any) as the Commissioner thinks fit; and
(b) in any other case-the amount that, in the opinion of the Commissioner,
is reasonable remuneration by way of salary or wages for any services
rendered by the minor during the year of income in the production of
assessable income of the business increased by such amount (if any)
as, in the opinion of the Commissioner, is reasonable, having regard
to the extent to which the capital of the business consisted of
property contributed by the minor the income from which would, in the
opinion of the Commissioner, be excepted assessable income in relation
to the minor.
"(6) Subject to sub-section (7), where assessable income is derived by a
person, directly or indirectly, under or as a result of an agreement (whether
entered into before or after the commencement of this sub- section) any 2 or
more of the parties to which were not dealing with each other at arm's length
in relation to the agreement and the amount of the assessable income so
derived is greater than the amount (in this sub- section referred to as the
'arm's length amount') of the assessable income that, in the opinion of the
Commissioner, would have been derived by the person, directly or indirectly,
under or as a result of that agreement if the parties to the agreement had
dealt with each other at arm's length in relation to the agreement,
sub-section (2) does not apply in relation to that assessable income to the
extent to which the amount of the assessable income exceeds the arm's length
amount.
"(7) Sub-section (2) does not apply in relation to assessable income derived
by a person directly or indirectly under or as a result of an agreement that
was entered into or carried out by any person (whether before or after the
commencement of this sub-section) for the purpose, or for purposes that
included the purpose, of securing that that assessable income would not be
eligible assessable income.
"(8) In determining whether sub-section (7) applies in relation to an
agreement, no regard shall be had to a purpose that is a merely incidental
purpose.
"(9) Where-
(a) any assessable income is derived by a person from the investment of
any property transferred to the person by way of, or in satisfaction
of a claim for, damages in respect of-
(i) loss by the person of parental support; or
(ii) personal injury to the person, any disease suffered by the
person or any impairment of the person's physical or mental
condition; and
(b) that property was transferred to that person otherwise than in
pursuance of an order of a court, paragraph (b) of sub-section (2)
applies only to so much (if any) of that assessable income as the
Commissioner considers fair and reasonable.
"(10) Where-
(a) the assessable income of a person (in this sub-section referred to as
the 'minor') of a year of income-
(i) includes an amount derived by the minor from property that-
(A) was transferred to the minor by another person out of
property that devolved upon that other person from the
estate of a deceased person; and
(B) was so transferred within 3 years after the date of the
death of the deceased person, but does not include any
amount that-
(C) was derived by the minor from property that devolved upon
the minor from the estate of that deceased person; or
(D) is included in the assessable income of the minor under
section 97 or 100 in respect of the share of the minor of
the net income of a trust estate that resulted from a
will or codicil of that deceased person, an order of a
court that varied or modified the provisions of a will or
codicil of that deceased person, a partial intestacy of
that deceased person or an order of a court that varied
or modified the application, in relation to the estate of
that deceased person, of the provisions of the law
relating to the distribution of the estates of persons
who die intestate; or
(ii) includes an amount derived by the minor from property that-
(A) was transferred to the minor by another person out of
property that devolved upon that other person from the
estate of a deceased person; and
(B) was so transferred within 3 years after the date of death
of the deceased person, and also includes an amount or
amounts to which clause (C) or (D) of sub-paragraph (i)
applies; and
(b) the amount to which sub-paragraph (i) of paragraph (a) applies or the
sum of the amounts to which sub-paragraph (ii) of paragraph (a)
applies, as the case may be, exceeds the amount that, in the opinion
of the Commissioner, would have been included in the assessable income
of the minor of the year of income in respect of an amount or amounts
derived by the minor from property that, in the opinion of the
Commissioner, would have devolved upon or for the benefit of the minor
from the estate of that deceased person if that deceased person had
died intestate, the amount of the assessable income of the minor of
the year of income that would, apart from this sub-section, have been
excepted assessable income by virtue of sub-paragraph (ii) of
paragraph (c) of sub-section (2) shall be reduced by the amount of
that excess. Employment income and business income
"102AF. (1) Subject to sub-section (2), a reference in this Division to
employment income shall be read as a reference to- (a) salary or wages within
the meaning of Division 2 of Part VI; and (b) payments made for services
rendered or to be rendered.
"(2) For the purpose of the application, for the purposes of paragraph (a) of
sub-section (1), of the definition of 'salary or wages' in sub-section (1) of
section 221A, paragraph (f) of that definition shall be read as if the words',
but not including payments made under a policy of insurance to the owner of
the policy' were omitted.
"(3) In this Division, a reference, in relation to a person in relation to a
year of income, to business income shall be read as a reference to income, not
being employment income, derived by the person during the year of income from
carrying on of a business either alone or together with another person or
other persons. Trust income to which Division applies
"102AG. (1) Where a beneficiary of a trust estate is a prescribed person in
relation to a year of income, this Division applies to so much of the share of
the beneficiary of the net income of the trust estate of the year of income
as, in the opinion of the Commissioner, is attributable to assessable income
of the trust estate that is not, in relation to that beneficiary, excepted
trust income.
"(2) Subject to this section, an amount included in the assessable income of a
trust estate is excepted trust income in relation to a beneficiary of the
trust estate to the extent to which the amount-
(a) is assessable income of a trust estate that resulted from-
(i) a will, codicil or an order of a court that varied or modified
the provisions of a will or codicil; or
(ii) an intestacy or an order of a court that varied or modified the
application, in relation to the estate of a deceased person, of
the provisions of the law relating to the distribution of the
estates of persons who die intestate;
(b) is employment income;
(c) is derived by the trustee of the trust estate from the investment of
any property transferred to the trustee for the benefit of the
beneficiary-
(i) by way of, or in satisfaction of a claim for, damages in
respect of-
(A) loss by the beneficiary of parental support; or
(B) personal injury to the beneficiary, any disease suffered
by the beneficiary or any impairment of the beneficiary's
physical or mental condition;
(ii) pursuant to any law relating to worker's compensation;
(iii) pursuant to any law relating to the payment of compensation in
respect of criminal injuries;
(iv) directly as the result of the death of a person and under the
terms of a policy of life insurance;
(v) directly as the result of the death of a person and out of a
provident, benefit, superannuation or retirement fund;
(vi) directly as the result of the death of a person by an employer
of the deceased person;
(vii) out of a public fund established and maintained exclusively for
the relief of persons in necessitous circumstances; or
(viii) pursuant to-
(A) a decree or order of dissolution or annulment of
marriage, being a dissolution or annulment that, by
reason of the Family Law Act 1975, has effect, or
continues to have effect in Australia or is recognized as
valid in Australia; or
(B) a decree or order of judicial separation or a similar
decree or order;
(d) is derived by the trustee of the trust estate from the investment of
any property-
(i) that devolved for the benefit of the beneficiary from the
estate of a deceased person;
(ii) that was transferred to the trustee for the benefit of the
beneficiary by another person out of property that devolved
upon that other person from the estate of a deceased person and
was so transferred within 3 years after the date of the death
of the deceased person; or
(iii) being a verifiable prize in a legally authorized and conducted
lottery and being a prize of which the beneficiary is the
beneficial owner; or
(e) is derived by the trustee of the trust estate from the investment of
any property that, in the opinion of the Commissioner, represents
accumulations of-
(i) assessable income derived by the trustee during a year of
income in relation to which this Division applies, being
assessable income that, in relation to the beneficiary, is
excepted trust income;
(ii) assessable income derived by the trustee during a year of
income in relation to which this Division does not apply, being
assessable income that would, in the opinion of the
Commissioner, have been excepted trust income in relation to
the beneficiary if this Division were applicable in relation to
the year of income during which the assessable income was
derived; or
(iii) exempt income derived by the trustee to which subparagraph (i)
or (ii) would, in the opinion of the Commissioner, apply if
that exempt income had been assessable income.
"(3) Subject to sub-section (4), where assessable income is derived by a
trustee, directly or indirectly, under or as a result of an agreement (whether
entered into before or after the commencement of this sub- section) any 2 or
more of the parties to which were not dealing with each other at arm's length
in relation to the agreement and the amount of the assessable income so
derived is greater than the amount (in this sub- section referred to as the
'arm's length amount') of the assessable income that, in the opinion of the
Commissioner, would have been derived by the trustee, directly or indirectly,
under or as a result of that agreement if the parties to the agreement had
dealt with each other at arm's length in relation to the agreement,
sub-section (2) does not apply in relation to that assessable income to the
extent to which the amount of the assessable income exceeds the arm's length
amount.
"(4) Sub-section (2) does not apply in relation to assessable income derived
by a trustee directly or indirectly under or as a result of an agreement that
was entered into or carried out by any person (whether before or after the
commencement of this sub-section) for the purpose, or for purposes that
included the purpose, of securing that that assessable income would be
excepted trust income.
"(5) In determining whether sub-section (4) applies in relation to an
agreement, no regard shall be had to a purpose that is a merely incidental
purpose.
"(6) Where-
(a) any assessable income is derived by a trustee of a trust estate from
the investment of any property transferred to the trustee for the
benefit of a beneficiary of the trust estate by way of, or in
satisfaction of a claim for, damages in respect of-
(i) loss by the beneficiary of parental support; or
(ii) personal injury to the beneficiary, any disease suffered by the
beneficiary or any impairment of the beneficiary's physical or
mental condition; and
(b) that property was transferred to the trustee otherwise than in
pursuance of an order of a court, paragraph (c) of sub-section (2)
applies only to so much (if any) of that assessable income as the
Commissioner considers fair and reasonable.
"(7) Where-
(a) any assessable income is derived by a trustee of a trust estate from
the investment of any property transferred to the trustee for the
benefit of a beneficiary of the trust estate by another person out of
property that devolved upon that other person from the estate of a
deceased person and was so transferred to the trustee within 3 years
after the date of death of the deceased person; and
(b) the amount referred to in paragraph (a) or, if the assessable income
of that beneficiary of the year of income includes any amount that-
(i) was derived by the beneficiary from property that was
transferred to the beneficiary by another person out of
property that devolved upon that other person from the estate
of that deceased person and was so transferred within 3 years
after the date of death of that deceased person;
(ii) was derived by the beneficiary from property that devolved upon
the beneficiary from the estate of that deceased person; or
(iii) is included in that assessable income under section 97 or 100
in respect of the share of that beneficiary of the net income
of another trust estate, being a trust estate that resulted
from a will or codicil of that deceased person, an order of a
court that varied or modified the provisions of a will or
codicil of that deceased person, a partial intestacy of that
deceased person or an order of a court that varied or modified
the application, in relation to the estate of that deceased
person, of the provisions of the law relating to the
distribution of estates of persons who die intestate, the sum
of the amount referred to in paragraph (a) and the amount or
amounts applicable by virtue of sub-paragraphs (i), (ii) and
(iii) of this paragraph, exceeds the amount that, in the
opinion of the Commissioner, would have been included in the
assessable income of the beneficiary of the year of income in
respect of an amount or amounts derived by the beneficiary from
property that, in the opinion of the Commissioner, would have
devolved directly upon that beneficiary if that deceased person
had died intestate, the amount of the assessable income of the
trust estate that would, apart from this sub-section, have been
excepted trust income in relation to that beneficiary by virtue
of sub-paragraph (ii) of paragraph (d) of sub-section (2) shall
be reduced by the amount of that excess.
"(8) For the purposes of this section, where-
(a) any property is transferred to the trustee of a trust estate; and
(b) the trustee has a discretion to pay or apply the income derived from
that property to or for the benefit of specified beneficiaries or
beneficiaries included in a specified class of beneficiaries, that
property shall be taken to have been transferred to the trustee for
the benefit of each of those specified beneficiaries or for each of
the beneficiaries in that specified class of beneficiaries, as the
case may be. Commissioner may allow rebate
"102AH. (1) Subject to this section, where it is established to the
satisfaction of the Commissioner that, in relation to income derived during a
year of income by a prescribed person, or by a trustee on behalf of a
prescribed person, under arrangements entered into on or before 26 July 1979,
it would be unreasonable that the whole of the additional amount of tax
payable in respect of that income by virtue of the application of this
Division should be payable, the Commissioner may grant to the prescribed
person or the trustee, as the case may be, in an assessment in respect of any
such income, a rebate of tax of such amount (if any) as the Commissioner
considers fair and reasonable, not exceeding that additional amount.
"(2) In a case where a parent of the prescribed person, or the parents of the
prescribed person, has or have in relation to the year of income a taxable
income or taxable incomes, neither the prescribed person nor any trustee is
entitled to a rebate under sub-section (1) in relation to income that is
subject to tax by virtue of the application of this Division, unless it is
established to the Commissioner's satisfaction that the tax payable in respect
of that income under this Act, apart from this section and section 102AJ, is
greater than the tax that would have been payable in respect of that income if
the parent of the prescribed person who has the higher taxable income (or in a
case where the parents have equal taxable incomes, the father) had been liable
to pay tax in respect of an amount equal to the taxable income of that parent
increased by so much of the aggregate of the incomes of the children of that
parent, or of trustees for the children, as represents income to which this
Division applies that was derived under arrangements entered into on or before
26 July 1979.
"(3) In determining the amount of any rebate that may be granted to a person
in accordance with sub-section (1)-
(a) the Commissioner may, if he is satisfied that the aggregated taxable
income referred to in sub-section (2) was, by reason of any tax
avoidance agreement, lower than it would have been but for any such
agreement, take that factor into account as a factor operating against
the granting of the rebate; and
(b) the Commissioner may have regard to such other matters as he thinks
fit.
"(4) Where the Commissioner, in an assessment, has granted a rebate to a
person under this section and the Commissioner subsequently forms the opinion
that the rebate should not have been granted or that a lesser rebate should
have been granted, nothing in section 170 prevents the amendment of the
assessment for the purpose of disallowing or reducing the rebate, as the case
may be.
"(5) Nothing in section 170 prevents the amendment of an assessment at any
time for the purpose of granting a rebate under this section or increasing a
rebate granted under this section.
"(6) In this section, 'tax avoidance agreement' means an agreement, not being
an agreement entered into or carried out in the course of ordinary family or
commercial dealing, that was entered into or carried out by any person for the
purpose, or for purposes that included the purpose, of securing that a person
who, if the agreement had not been entered into or carried out, would have
been liable to pay income tax in respect of a year of income would not be
liable to pay income tax in respect of that year of income or would be liable
to pay less income tax in respect of that year of income than that person
would have been liable to pay if the agreement had not been entered into or
carried out. Rebate in case of serious hardship
"102AJ. (1) In any case where it is established to the satisfaction of the
Commissioner that-
(a) the tax that, apart from this section and apart from section 265,
would be payable by a person in respect of a year of income exceeds
the tax that, apart from section 265, would be payable by the person
in respect of that year of income if this Division had not been
enacted; and
(b) for any reason, the exaction of the full amount of tax that, apart
from this section and apart from section 265, would be payable by the
person in respect of that year of income would entail serious
hardship, that person is entitled, in his assessment in respect of
that year of income, to a rebate of tax of such amount, not exceeding
the amount of the excess referred to in paragraph (a), as the
Commissioner considers reasonable.
"(2) A reference in sub-section (1) to tax payable by a person shall be read
as including a reference to tax payable by a trustee of a trust estate in
pursuance of section 98 in respect of a share of a beneficiary of the net
income of the trust estate.
"(3) Nothing in section 170 prevents the amendment of an assessment at any
time for the purpose of granting a rebate under this section or increasing a
rebate granted under this section.".
(2) A person who has reason to believe that he will be liable to pay tax in
respect of the year of income that commenced on 1 July 1979 that the person
believes he would not be liable to pay, in whole or in part, if sub-section
(1) had not been enacted, may furnish to the Commissioner a return, in a form
provided by the Commissioner for the purpose, pose, containing the particulars
requested by that form.
(3) Where, in accordance with sub-section (2), a person furnishes a return to
the Commissioner, the amount of provisional tax payable by that person, in
accordance with Division 3 of Part VI of the Income Tax Assessment Act 1936,
in respect of the year of income that commenced on 1 July 1979 is the amount
that the Commissioner estimates from the return so furnished or from any other
information in his possession, will be the income tax payable by the taxpayer
in respect of the income (other than salary or wages within the meaning of
that Division) of the year of income.
(4) A reference in sub-section (2) to a person who will be liable to pay tax
includes a reference to a trustee of a trust estate who will be liable to pay
tax in pursuance of section 98 in respect of a share of a beneficiary of the
net income of a trust estate.
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