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INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-15 - NON-ASSESSABLE INCOME    View history reference

Division 52 - Certain pensions, benefits and allowances are exempt from income tax    View history reference

Subdivision 52-A - Exempt payments under the Social Security Act 1991    View history reference

Operative provisions

SECTION 52-30  Tax-free amount of certain other bereavement lump sum payments  

 View history reference ITAA 36

52-30(1)  

 View history reference
This section applies if a lump sum of any of these categories of social security payments becomes due to you because of your partner ' s death.
  Category of social security payment
Austudy payment
Mature age allowance (paid under Part 2.12B)
Newstart allowance
Parenting payment (benefit PP (partnered))
Partner allowance
Sickness allowance
Special benefit
Youth allowance

Note:

A reference in this table to newstart allowance or youth allowance includes a reference to farm household allowance under the Farm Household Support Act 2014 (see Part 5 of that Act).

[ CCH Note 1: S 52-30(1) will be amended by No 26 of 2018, s 3 and Sch 1 items 19 - 21, by inserting " Jobseeker payment " after " Austudy payment " in the table, omitting " Newstart allowance " from the table and substituting " jobseeker payment " for " newstart allowance " in the note, effective 20 March 2020. For saving provision, see note under s 52-10 .]

[ CCH Note 2: S 52-30(1) will be amended by No 26 of 2018, s 3 and Sch 5 item 38, by omitting " Sickness allowance " from the table, effective 20 September 2020. For saving provision, see note under s 52-20(3) .]

[ CCH Note 3: S 52-30(1) will be amended by No 26 of 2018, s 3 and Sch 7 item 5, by omitting " Partner allowance " from the table, effective 1 January 2022. No 26 of 2018, s 3 and Sch 7 item 70 contains the following saving provision:

70 Saving provision - Income Tax Assessment Act 1997  
70  Despite the amendments made by this Schedule, item 22.1 of the table in section 52-10 and sections 52-15 and 52-30 of the Income Tax Assessment Act 1997 , as in force immediately before the commencement of this item, continue to apply on and after that commencement in relation to a payment of partner allowance under Part 2.15A of the Social Security Act 1991 before, on or after that commencement.

]

52-30(2)  

The total of the following are exempt up to the *tax-free amount:


(a) the lump sum payment;


(b) all other payments that become due to you under the Social Security Act 1991 during the bereavement lump sum period.
 View history reference

52-30(3)  

 View history reference
This is how to work out the tax-free amount :

Method statement

Step 1. 

Work out the payments under the Social Security Act 1991 that would have become due to you during the bereavement lump sum period if:

(a) your partner had not died; and
(b) your partner had been under pension age; and
(c) immediately before your partner died, you and your partner had been neither an illness separated couple nor a respite care couple.

Step 2. 

Work out how much of those payments would have been exempt in those circumstances.


Step 3. 

Work out the payments under the Social Security Act 1991 that would have become due to your partner during the bereavement lump sum period if your partner had not died, even if the payments would not have been exempt.


Step 4. 

Total the payments worked out at Steps 2 and 3: the result is the tax-free amount .


 



This information is provided by CCH Australia Limited. View the disclaimer and notice of copyright.
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