Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION

PART 2-15 - NON-ASSESSABLE INCOME

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Division 51 - Exempt amounts

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SECTION 51-32 Compensation payments for loss of tax exempt payments

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51-32(1)
A compensation payment for the loss of pay or an allowance for your warlike service is exempt from income tax if:

(a) the compensation payment is made under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 in respect of an injury (as defined in that Act) you suffered; and

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(b) you suffered your injury while covered by a certificate in force under paragraph 23AD(1)(a) of the Income Tax Assessment Act 1936 ; and

(c) your injury or disease caused the loss of your pay or allowance; and

(d) your pay or allowance was payable under the Defence Act 1903 or under a determination under that Act.

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51-32(2)
A compensation payment for the loss of pay or an allowance for your warlike service is exempt from income tax if:

(a) the compensation payment is made under the Military Rehabilitation and Compensation Act 2004 in respect of a service injury or disease (as defined in that Act); and

(b) you sustained your service injury or contracted your service disease, or your service injury or disease was aggravated or materially contributed to, while covered by a certificate in force under paragraph 23AD(1)(a) of the Income Tax Assessment Act 1936 ; and

(c) your injury or disease caused the loss of your pay or allowance; and

(d) your pay or allowance was payable under the Defence Act 1903 or under a determination under that Act.

51-32(3)

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Subsections (4) and (5) apply to:

(a) a deployment allowance; or

(b) some other allowance that is exempt from income tax specified in writing by the *Defence Minister for the purposes of this subsection;

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that is payable under a determination under the Defence Act 1903 for your non-warlike service.

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51-32(4)
A compensation payment for the loss of the allowance is exempt from income tax if:

(a) the compensation payment is made under the Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 in respect of an injury (as defined in that Act) you suffered; and

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(b) your injury caused the loss of your allowance.

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51-32(5)
A compensation payment for the loss of the allowance is exempt from income tax if:

(a) the compensation payment is made under the Military Rehabilitation and Compensation Act 2004 in respect of a service injury or disease (as defined in that Act); and

(b) your injury or disease caused the loss of your allowance.

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History

S 51-32 substituted by No 52 of 2004, s 3 and Sch 4 item 10, applicable to assessments for the 2004-05 income year and later income years.

Act No 52 of 2004, s 3 and Sch 4 item 14, contained the following application provision:

14(3)
Subsections 51-32(1) and (4) and 51-33(1) of the Income Tax Assessment Act 1997 , substituted by item 10, apply to assessments for the 1996-97 income year and later income years.

Act No 52 of 2004, s 3 and Sch 4 item 15, contained the following provision:

Amendment of assessments
15
Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment made before the commencement of this item for the purposes of giving effect to subsections 51-32(1) and (4) and 51-33(1) of the Income Tax Assessment Act 1997 substituted by item 10.

S 51-32 formerly read:

Compensation payments for loss of deployment allowance for warlike service
51-32
A compensation payment for the loss of your deployment allowance for warlike service is exempt from income tax if:

(a) the payment is made under the Safety, Rehabilitation and Compensation Act 1988 in respect of an injury (as defined in that Act) you suffered; and

(b) you suffered your injury while covered by a certificate in force under paragraph 23AD(1)(a) of the Income Tax Assessment Act 1936 ; and

(c) your injury caused the loss of your deployment allowance; and

(d) your deployment allowance was payable under a determination under the Defence Act 1903 .

S 51-32 inserted by No 65 of 2003.

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