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

26   Carer pension

Section 24ABF of the Principal Act is amended:

(a) by omitting subsection (2) and substituting the following subsection:
        

"(2) Subsection (1) has effect subject to:

(a) subsection (4) (which deals with taxpayers who derive bereavement lump sum payments under section 239 of the Social Security Act 1991); and

(b) subsection (4A) (which deals with taxpayers who derive bereavement lump sum payments under section 236A of the Social Security Act 1991).";

(b) by inserting after subsection (4) the following subsection:
        

"(4A) If a taxpayer derives a payment under section 236A 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 on pension paydays that occurred during the bereavement lump sum period as does not exceed the tax-free amount calculated using the exempt bereavement payment calculator AA in section 24ABZC is exempt; and

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