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 51-33 Compensation payments for loss of pay and/or allowances as a Defence reservist

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51-33(1)
A compensation payment for the loss of your pay or an 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) you suffered your injury while serving as a member of the Naval Reserve, Army Reserve or Air Force Reserve (but not while on continuous full time service); and

(c) your pay or allowance was payable for service of a kind described in paragraph (b).

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51-33(2)
A compensation payment for the loss of your pay or an 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) you sustained your service injury or contracted your service disease, or your service injury or disease was aggravated or materially contributed to, while serving as a member of the Naval Reserve, Army Reserve or Air Force Reserve; and

(c) your pay or allowance was payable for service of a kind described in paragraph (b); and

(d) the compensation payment is worked out by reference to your normal earnings (as defined in that Act) as a part-time Reservist (as defined in that Act).

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History

S 51-33 substituted by No 52 of 2004, s 3 and Sch 4 item 10, applicable to assessments for the 2004-05 year of income and later years of income.

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 51-33 formerly read:

Compensation payments for loss of pay and/or allowances as a Defence reservist
51-33
A compensation payment for the loss of your pay and/or allowances is exempt form 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 serving as a member of the Naval Reserve, Army Reserve or Air Force Reserve (but not while on continuous full time service); and

(c) your injury was the sole or dominant reason for you stopping being a member of that Reserve; and

(d) your pay and/or allowances were payable for service of a kind described in paragraph (b).

S 51-33 inserted by No 65 of 2003.

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