Explanatory Memorandum
(Circulated by authority of the Minister for Veterans' Affairs, The Honourable Bruce Billson MP)Schedule 4 - Amendments to the Income Tax Assessment Act 1936
Overview
The amendments to the Income Tax Assessment Act 1936 made by this Schedule will include appropriate references to payments of income support supplement under the VEA in the Tax File Number (TFN) exemption provisions.
Background
Part IIIA was inserted into the VEA to provide for the payment of income support supplement to certain war widows and widowers. It was created to replace the ceiling rate income support age, carer, wife and disability support pensions, paid to war widows/widowers under the SSA.
Sections 202EA and 202EB were inserted into the Income Tax Assessment Act 1936 as part of the amendments concerning Tax File Numbers made by the Taxation Laws Amendment (Tax File Numbers) Act 1988 .
Section 202EA refers to payments of "pension under Part III of the Veterans' Entitlements Act 1986 " in the list of payments made under the SSA and VEA for which an exemption is granted for the need to provide a TFN.
Section 202EB refers to payments of "pension under Part III of the Veterans' Entitlements Act 1986 " in the list of payments made under the SSA or VEA for which an exemption is given from the requirement to quote their TFN to an investment body in relation to certain investments.
With the introduction of the income support supplement consequential amendments to other Acts were made by the Veterans' Affairs (1994-95 Budget Measures) Legislation Amendment Act (No. 2) 1994 . However, that Act did not make appropriate amendments to sections 202EA and 202EB of the Income Tax Assessment Act 1936 .
Explanation of the items
Items 1 and 2 insert new paragraphs 202EA(5)(ia) and 202EB(5)(d) into sections 202EA and 202EB respectively, to include a reference to "income support supplement under Part IIIA of the Veterans' Entitlements Act 1986 ".
Commencement
Items 1 and 2 commence on the day after Royal Assent.