Taxation Laws Amendment Act 1994 (56 of 1994)

Part 3   AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936

Division 4   Exemptions for pensions and allowances

Subdivision A   Bereavement payments

29   Sickness allowance

Section 24ABO of the Principal Act is amended by omitting subsection (2) and substituting the following subsections:

"(2) Payments under section 728PB, 728X or 728Y of the Social Security Act 1991 (which deal with bereavement payments) are exempt.

"(3) If a taxpayer derives a payment under section 728PC of the Social Security Act 1991:

(a) so much of the sum of that payment and other payments under the Social Security Act 1991 derived by the taxpayer during the bereavement lump sum period as does not exceed the tax-free amount calculated using the exempt bereavement payment calculator AB in section 24ABZD is exempt; and

(b) the balance of the sum is not exempt.

"(4) If:

(a) a taxpayer's partner died; and

(b) the taxpayer would have been qualified for payments under a bereavement Subdivision but for an exclusion provision (taxpayer's pension or allowance increased on partner's death to such an extent that no bereavement payments); and

(c) the taxpayer derives payments of sickness allowance during the bereavement period;

then those payments are not treated under subsection (1) but as follows:

(d) the supplementary amounts are exempt;

(e) so much of the balance as exceeds what would have been the balance (payments less supplementary amounts) if the partner had not died is exempt;

(f) the rest of the balance is not exempt.".