Income Tax Assessment Act 1997
CHAPTER 2
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LIABILITY RULES OF GENERAL APPLICATION
PART 2-15
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NON-ASSESSABLE INCOME
Division 52
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Certain pensions, benefits and allowances are exempt from income tax
Subdivision 52-A
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Exempt payments under the Social Security Act 1991
Operative provisions
SECTION 52-35 Tax-free amount of a lump sum payment made because of the death of a person you are caring for 52-35(1)
This section applies if a lump sum payment becomes due to you under section 236A of the Social Security Act 1991 because of the death of the care receiver or any of the care receivers.
52-35(2)
The total of the following are exempt up to the *tax-free amount:
(a) the lump sum payment;
(b) all other payments that become due to you under the Social Security Act 1991 during the bereavement lump sum period.
52-35(3)
This is how to work out the tax-free amount : Method statement
Step 1.(a) the care receiver had not died; and
(b) the care receiver had been under *pension age.
Step 2.
Step 3.
Step 4.
View history note
Hide history noteSECTION 52-35 Tax-free amount of a lump sum payment made because of the death of a person you are caring for 52-35(1)
This section applies if a lump sum payment becomes due to you under section 236A of the Social Security Act 1991 because of the death of the care receiver or any of the care receivers.
52-35(2)
The total of the following are exempt up to the *tax-free amount:
(a) the lump sum payment;
(b) all other payments that become due to you under the Social Security Act 1991 during the bereavement lump sum period.
52-35(3)
This is how to work out the tax-free amount : Method statement
Step 1.
Work out the payments under the Social Security Act 1991 that would have become due to you during the bereavement lump sum period if:
Step 2.
Work out how much of those payments would have been exempt in those circumstances.
Step 3.
Work out the payments under the Social Security Act 1991 that would have become due to the care receiver during the bereavement lump sum period if the care receiver had not died, even if the payments would not have been exempt.
Step 4.
Total the payments worked out at Steps 2 and 3: the result is the tax-free amount .
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