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

30   Special benefit

Section 24ABP of the Principal Act is amended by adding at the end the following subsections:

"(2) Payments under section 768B, 771C or 771D of the Social Security Act 1991 (which deal with bereavement payments) are exempt.

"(3) If a taxpayer derives a payment under section 768C 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 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 special benefit 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.".