Seniors Health Card Taxable Income Test Calculator

Satisfying the seniors health card taxable income test

      1071-1  This is how to work out whether a person satisfies the seniors health card taxable income test at a particular time (the test time ).

Reference tax year

1071-2(1)  In the ordinary case, a person’s reference tax year is:

                     (a)  if the person has received a notice of assessment of his or her taxable income for the tax year immediately preceding the tax year in which the test time occurred—that immediately preceding tax year; or

                     (b)  otherwise—the tax year immediately preceding the tax year applicable under paragraph (a).

             (2)  However, if the person has informed the Secretary in writing that the person wishes to have his or her entitlement to a seniors health card determined by reference to his or her adjusted taxable income for the tax year in which the test time occurred (the current tax year ), the person’s reference tax year is the current tax year.

Adjusted taxable income

      1071-3  For the purposes of this Part, a person’s adjusted taxable income for a particular tax year is the sum of the following amounts ( income components ):

                     (a)  the person’s taxable income for that year;

                     (b)  the person’s fringe benefits value for that year;

                     (c)  the person’s target foreign income for that year;

                     (d)  the person’s net rental property loss for that year.

Note 1:       For taxable income see subsection 23(1) and point 1071-4.

Note 2:       For fringe benefits value see point 1071-6.

Note 3:       For target foreign income see subsection 10A(2) and point 1071-7.

Note 4:       For net rental property loss see subsection 10A(15) and point 1071-8.

Taxable income

      1071-4  For the purposes of this Part, a person’s taxable income for a particular tax year is:

                     (a)  the person’s assessed taxable income for that year; or

                     (b)  if the person does not have an assessed taxable income for that year—the person’s accepted estimate of taxable income for that year.

Assessed taxable income

      1071-5  For the purposes of this Part, a person’s assessed taxable income for a particular tax year at a particular time is the most recent of:

                     (a)  if, at that time, the Commissioner of Taxation has made an assessment or an amended assessment of that taxable income—that taxable income according to the assessment or amended assessment; or

                     (b)  if, at that time, a tribunal has amended an assessment or an amended assessment made by the Commissioner—that taxable income according to the amendment made by the tribunal; or

                     (c)  if, at that time, a court has amended an assessment or an amended assessment made by the Commissioner or an amended assessment made by a tribunal—that taxable income according to the amendment made by the court.

Fringe benefits value

      1071-6  For the purposes of this Part, a person’s fringe benefits value for a particular tax year is the person’s accepted estimate of the amount by which the total of the assessable fringe benefits received or to be received by the person in the tax year exceeds $1,000.

Note:          For assessable fringe benefit see subsection 10A(2) and Part 3.12A.

Target foreign income

      1071-7  For the purposes of this Part, a person’s target foreign income for a particular tax year is the person’s accepted estimate of the amount of that income for that year.

Net rental property loss

      1071-8  For the purposes of this Part, a person’s net rental property loss for a particular tax year is the person’s accepted estimate of the amount of that loss for that year.

Accepted estimate

      1071-9  For the purposes of this Part, a person’s accepted estimate of an income component for a particular tax year is that income component according to the most recent notice given by the person to the Secretary under point 1071-10 and accepted by the Secretary for the purposes of this Part.

Notice estimating income component

1071-10(1) A person may give the Secretary a notice, in a form approved by the Secretary, setting out the person’s estimate of an income component of the person for a tax year.

             (2)  The notice is to contain, or be accompanied by, such information as is required by the form to be contained in it or to accompany it, as the case may be.

             (3)  The Secretary is to accept a notice only if the Secretary is satisfied that the estimate is reasonable.

Adjusted taxable income of members of couples

    1071-11  If a person is a member of a couple, add the couple’s adjusted taxable incomes for the reference tax year and divide by 2 to work out the amount of the person’s adjusted taxable income for the reference tax year.

Seniors health card taxable income limit

    1071-12  A person’s seniors health card taxable income limit is worked out using the Seniors Health Card Taxable Income Limit Table. Work out which family situation in the table applies to the person. The person’s seniors health card taxable income limit is the corresponding amount in column 3 plus an additional corresponding amount in column 4 for each dependent child of the person.

Note 1:       For member of couple , partnered , illness separated couple , respite care couple and partnered (partner in gaol) see section 4.

Note 2:       For dependent child see section 5.

9  At the end of subsection 1157A(1)

Add:

These provisions are also necessary for the purposes of the Seniors Health Card Taxable Income Test Calculator.

10  Section 1190 (Indexed and Adjusted Amounts Table, items 58 to 62)

Repeal the items.

11  Section 1206C

Repeal the section.

Division 8 — Seniors Health Card Income Test Calculator

Seniors Health Card Income Test Calculator

Satisfying the seniors health card income test

118ZAA-1  This is how to work out whether a person satisfies the seniors health card income test at a particular time (the test time ).

Reference tax year

118ZAA-2(1)  In the ordinary case, a person’s reference tax year is:

                     (a)  if the person has received a notice of assessment of his or her taxable income for the tax year immediately preceding the tax year in which the test time occurred—that immediately preceding tax year; or

                     (b)  otherwise—the tax year immediately preceding the tax year applicable under paragraph (a).

             (2)  However, if the person has informed the Secretary in writing that the person wishes to have his or her entitlement to a seniors health card determined by reference to his or her adjusted taxable income for the tax year in which the test time occurred (the current tax year ), the person’s reference tax year is the current tax year.

Adjusted taxable income

118ZAA-3  For the purposes of this Division, a person’s adjusted taxable income for a particular tax year is the sum of the following amounts ( income components ):

                     (a)  the person’s taxable income for that year;

                     (b)  the person’s fringe benefits value for that year;

                     (c)  the person’s target foreign income for that year;

                     (d)  the person’s net rental property loss for that year.

Note 1:       For taxable income see point 118ZAA-4.

Note 2:       For fringe benefits value see point 118ZAA-5.

Note 3:       For target foreign income see point 118ZAA-6.

Note 4:       For net rental property loss see point 118ZAA-7.

Taxable income

118ZAA-4(1)  In this Division:

taxable income has the same meaning as in the Income Tax Assessment Act 1997.

             (2)  For the purposes of this Division, a person’s taxable income for a particular tax year is:

                     (a)  the person’s assessed taxable income for that year; or

                     (b)  if the person does not have an assessed taxable income for that year—the person’s accepted estimate of taxable income for that year.

             (3)  For the purposes of this Division, a person’s assessed taxable income for a particular tax year at a particular time is the most recent of:

                     (a)  if, at that time, the Commissioner of Taxation has made an assessment or an amended assessment of that taxable income—that taxable income according to the assessment or amended assessment; or

                     (b)  if, at that time, a tribunal has amended an assessment or an amended assessment made by the Commissioner—that taxable income according to the amendment made by the tribunal; or

                     (c)  if, at that time, a court has amended an assessment or an amended assessment made by the Commissioner or an amended assessment made by a tribunal—that taxable income according to the amendment made by the court.

Fringe benefits value

118ZAA-5(1)  For the purposes of this Division, a person’s fringe benefits value for a particular tax year is the person’s accepted estimate of the amount by which the total of the assessable fringe benefits received or to be received by the person in the tax year exceeds $1,000.

Note:          The amount of $1,000 corresponds to the fringe benefits value free area in point 1069-H24 in the Family Allowance Rate Calculator in Part 3.7 of the Social Security Act 1991 .

             (2)  In this point:

assessable fringe benefit has the meaning given by subsection 10A(2) of the Social Security Act 1991 .

             (3)  The value of an assessable fringe benefit is to be worked out in accordance with Part 3.12A of the Social Security Act 1991 except that references in that Part to the Minister and to the Secretary are to be taken to be references to the Minister for Veterans’ Affairs and to the Secretary to the Department of Veterans’ Affairs, respectively.

Target foreign income

118ZAA-6(1)  In this Division:

foreign income , in relation to a person, means:

                     (a)  an income amount earned, derived or received by the person from a source outside Australia for the person’s own use or benefit; or

                     (b)  a periodical payment by way of gift or allowance from a source outside Australia; or

                     (c)  a periodical benefit by way of gift or allowance from a source outside Australia.

target foreign income means foreign income that is not:

                     (a)  taxable income; or

                     (b)  received in the form of a fringe benefit.

             (2)  For the purposes of this Division, a person’s target foreign income for a particular tax year is the person’s accepted estimate of the amount of that income for that year.

Net rental property loss

118ZAA-7(1)  In this Division:

net rental property loss , in relation to a person for a tax year, means:

                     (a)  if the expenses incurred by the person on rental property during that year exceed the person’s gross rental property income for that year—the amount by which those expenses exceed that gross rental property income; or

                     (b)  otherwise—nil.

             (2)  For the purposes of this Division, a person’s net rental property loss for a particular tax year is the person’s accepted estimate of the amount of that loss for that year.

Accepted estimate

118ZAA-8  For the purposes of this Division, a person’s accepted estimate of an income component for a particular tax year is that income component according to the most recent notice given by the person to the Secretary under point 118ZAA-9 and accepted by the Commission for the purposes of this Part.

Notice estimating income component

118ZAA-9(1)  A person may give the Secretary a notice, in a form approved by the Commission, setting out the person’s estimate of an income component of the person for a tax year.

             (2)  The notice is to contain, or be accompanied by, such information as is required by the form to be contained in it or to accompany it, as the case may be.

             (3)  The Commission is to accept a notice only if the Commission is satisfied that the estimate is reasonable.

Adjusted taxable income of members of couples

118ZAA-10     If a person is a member of a couple, add the couple’s adjusted taxable incomes for the reference tax year and divide by 2 to work out the amount of the person’s adjusted taxable income for the reference tax year.

Seniors health card income limit

118ZAA-11     A person’s seniors health card income limit is worked out using the Seniors Health Card Income Limit Table. Work out which family situation in the table applies to the person. The person’s seniors health card income limit is the corresponding amount in column 3 plus an additional corresponding amount in column 4 for each dependent child of the person.

Note 1:       For member of couple and partnered , see section 5E.

Note 2:       For illness separated couple and respite care couple , see section 5R.

Note 3:       For dependent child , see section 5F.