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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-B - Exempt payments under the Veterans' Entitlements Act 1986    View history reference

Operative provisions

SECTION 52-65  How much of a veterans' affairs payment is exempt?  

 View history reference

52-65(1)  

 View history reference [No equivalent]
The table in this section tells you about the income tax treatment of veterans' affairs payments, other than:


(a) payments of pension bonus, pension bonus bereavement payment, DFISA bonus or DFISA bonus bereavement payment; or
 View history reference


(b) clean energy payments; or
 View history reference


(ba) clean energy payments under the scheme prepared under Part VII (about educating veterans' children) of the Veterans' Entitlements Act 1986; or
 View history reference


(bb) (Repealed by No 12 of 2012)
 View history reference


(c) one-off energy assistance payments under the Veterans' Entitlements Act 1986; or
 View history reference


(d)-(da) (Repealed by No 128 of 2017)


(e) a prisoner of war recognition supplement under Part VIB of the Veterans' Entitlements Act 1986.
 View history reference

Note:

Section 52-75 sets out the provisions of the Veterans' Entitlements Act 1986 under which the payments are made.

52-65(1A)  

 View history reference [No equivalent]
The following payments under the Veterans' Entitlements Act 1986 are exempt from income tax:


(a) pension bonus and pension bonus bereavement payment under Part IIIAB;


(b) DFISA bonus and DFISA bonus bereavement payment under Part VIIAB.

52-65(1B)  

(Repealed by No 12 of 2012)

52-65(1BA)  

(Repealed by No 19 of 2008)

52-65(1C)  

(Repealed by No 12 of 2012)

52-65(1D)  

(Repealed by No 128 of 2017)

52-65(1E)  

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A lump sum payment under section 198N of the Veterans' Entitlements Act 1986 is exempt from income tax.

52-65(1F)  

 View history reference
A prisoner of war recognition supplement under Part VIB of the Veterans' Entitlements Act 1986 is exempt from income tax.

52-65(1G)  

 View history reference
The following are exempt from income tax:


(a) clean energy payments under the Veterans' Entitlements Act 1986;


(b) clean energy payments under the scheme prepared under Part VII (about educating veterans' children) of that Act.

Note:

The supplementary amount of each other payment under the scheme mentioned in paragraph (b) is also exempt from income tax (see section 52-140).

[CCH Note: Despite amendments made by No 128 of 2017 related to the removal of spent veterans' affairs payments, subsection 52 65(1G), as in force immediately before 1 December 2017, continues to apply on and after 1 December 2017 in relation to a payment of clean energy advance under the Veterans' Entitlements Act 1986 made before, on or after 1 December 2017.]

52-65(1GA)  

 View history reference
One-off energy assistance payments under Part IIIF of the Veterans' Entitlements Act 1986 are exempt from income tax.

52-65(1H)  

(Repealed by No 128 of 2017)

[CCH Note: Despite amendments made by No 128 of 2017 related to the removal of spent veterans' affairs payments, subsection 52 65(1H), as in force immediately before 1 December 2017, continues to apply on and after 1 December 2017 in relation to an ETR payment made before, on or after 1 December 2017.]

52-65(1K)  

(Repealed by No 96 of 2014)

52-65(2)  

 ITAA 36
Expressions (except "pension age") used in this Subdivision that are also used in the Veterans' Entitlements Act 1986 have the same meaning as in that Act.

52-65(3)  

 ITAA 36
Pension age has the meaning given by subsection 23(1) of the Social Security Act 1991.

52-65(4)  

 ITAA 36
Ordinary payment means a payment other than a payment made because of a person's death.
Income tax treatment of veterans' affairs payments
ItemCategory of veterans' affairs paymentOrdinary paymentPayment made because of a person's death
1.1Age service pensionSupplementary amount is exempt (see section 52-70)Exempt
...........
2.1Attendant allowanceExemptNot applicable
...........
3.1Carer service pension: unless covered by item 3.2 or 3.3Supplementary amount is exempt (see section 52-70)Exempt
...........
3.2Carer service pension: both you and your partner are under pension age and your partner is receiving an invalidity service pensionExemptExempt
...........
3.3Carer service pension: you are under pension age, your partner has died and was receiving an invalidity service pension at deathExemptExempt
...........
4.1Clothing allowanceExemptNot applicable
...........
5.1Decoration allowanceExemptNot applicable
...........
5A.1Defence Force Income Support Allowance: the whole of the social security pension, or the whole of the social security benefit, that is also payable to you on the day this allowance is payable to you is exempt from income tax under section 52-10ExemptNot applicable
...........
6.1Income support supplement: unless covered by item 6.2, 6.3, 6.4 or 6.5Supplementary amount is exempt (see section 52-70)Exempt
...........
6.2Income support supplement: you are under pension age and receiving the supplement on the grounds of permanent incapacityExemptExempt
...........
6.3Income support supplement: both you and the severely handicapped person you are caring for are under pension age and you are receiving the supplement for providing constant care for that personExemptExempt
...........
6.4Income support supplement: both you and your partner are under pension age and your partner is an invalidity service pensioner or a disability support pensionerExemptExempt
...........
6.5Income support supplement: both you and your partner are under pension age and your partner is receiving the supplement on the grounds of permanent incapacityExemptExempt
...........
7.1Invalidity service pension: you are pension age or overSupplementary amount is exempt (see section 52-70)Exempt
...........
7.2Invalidity service pension: you are under pension ageExemptExempt
...........
8.1Loss of earnings allowanceExemptNot applicable
...........
9.1Partner service pension: unless covered by item 9.2 or 9.3Supplementary amount is exempt (see section 52-70)Exempt
...........
9.2Partner service pension: both you and your partner are under pension age and your partner is receiving an invalidity service pensionExemptExempt
...........
9.3Partner service pension: you are under pension age, your partner has died and was receiving an invalidity service pension at deathExemptExempt
...........
10.1Pension for defence-caused death or incapacityExemptNot applicable
...........
11.1Pension for war-caused death or incapacityExemptNot applicable
...........
12.1Quarterly pension supplementExemptNot applicable
...........
13.1Recreation transport allowanceExemptNot applicable
...........
14.1Section 98A Bereavement paymentNot applicableExempt
...........
14.2Section 98AA Bereavement paymentNot applicableExempt
...........
15.1Section 99 funeral benefitNot applicableExempt
...........
16.1Section 100 funeral benefitNot applicableExempt
...........
16A.1Energy supplement under Part VIIAD of the Veterans' Entitlements Act 1986ExemptNot applicable
...........
17.1Special assistanceExemptNot applicable
...........
18.1(Repealed by No 81 of 2009)  
...........
19.1(Repealed by No 95 of 2011)  
...........
20.1Travelling expensesExemptNot applicable
...........
20A.1(Repealed by No 81 of 2009)  
...........
21.1Vehicle Assistance SchemeExemptNot applicable
...........
21A.1Veterans supplementExemptNot applicable
...........
22.1Victoria Cross allowanceExemptNot applicable

[CCH Note: S 52-65 (table) will be amended by No 17 of 2018, s 3 and Sch 2 item 47, by inserting table item 21AA.1 after table item 21.1, effective 1 May 2018. Table item 21AA.1 will read:


21AA.1Veteran paymentSupplementary amount is exempt (see section 52-70)Exempt

]

 



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