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 B   Mature age allowance and mature age partner allowance

37   Insertion of new sections

After section 24ABM of the Principal Act the following sections are inserted:

Mature age allowance

"24ABMA.(1) The treatment of payments of mature age allowance under Part 2.12A of the Social Security Act 1991 is as follows:

(a) the supplementary amount is exempt;

(b) the balance is not exempt.

"(2) Subsection (1) has effect subject to subsection (4) (which deals with taxpayers who derive bereavement lump sum payments under section 660XKC of the Social Security Act 1991).

"(3) Payments under sections 660XKB, 660XKE and 660XKG of the Social Security Act 1991 (which deal with bereavement payments) are exempt.

"(4) If a taxpayer derives a payment under section 660XKC 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 do not exceed the tax-free amount calculated using the exempt bereavement payment calculator A in section 24ABZB is exempt; and

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

"(5) 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 mature age allowance under Part 2.12A of the Social Security Act 1991 on one or more of the 7 pension paydays after the death;

then those payments on that payday or each of those paydays are not treated under subsection (1) but as follows:

(d) 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.

Mature age partner allowance

"24ABMB.(1) The treatment of payments of mature age partner allowance under Part 2.12A of the Social Security Act 1991 is as follows:

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Supplementary Balance of

Item Category amounts payment

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1 Taxpayer not under pension age Exempt Not exempt

2 Taxpayer under pension age Exempt Exempt

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"(2) Subsection (1) has effect subject to subsection (4) (which deals with taxpayers who derive bereavement lump sum payments under section 660XKL of the Social Security Act 1991).

"(3) Payments under sections 660XKK and 660XKM of the Social Security Act 1991 (which deal with bereavement payments) are exempt.

"(4) If a taxpayer derives a payment under section 660XKL 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 do not exceed the tax-free amount calculated using the exempt bereavement payment calculator A in section 24ABZB is exempt; and

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

"(5) For the purposes of this section, a payment under section 660XKH of the Social Security Act 1991 is taken to be a payment of a mature age partner allowance.".