INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 1AA - Exemption from income tax: payments under the Social Security Act 1991 and the Veterans' Entitlements Act 1986, and similar payments  

Subdivision B - Exemption from income tax - payments under the Social Security Act 1991  

SECTION 24ABE   WIFE PENSION  

24ABE(1)   [Tax treatment of wife pension]  

The treatment of payments of wife pension under Part 2.4 of the Social Security Act 1991 is as follows:

Item	Category	Supplementary amounts	Balance of payment
1	Taxpayer not under pension age	Exempt	Not exempt
2	Partner not under pension age	Exempt	Not exempt
3	Both taxpayer and partner under pension age	Exempt	Exempt
4	(a) Taxpayer under pension age; and (b) Partner deceased	Exempt	Exempt

24ABE(2)   [Operation of subsec (1)]  

Subsection (1) has effect subject to subsection (4) (which deals with taxpayers who derive bereavement lump sum payments under section 190 of the Social Security Act 1991 ).

24ABE(3)   [Exempt bereavement payments]  

Payments under sections 189 and 191 of the Social Security Act 1991 (which deal with bereavement payments) are exempt.

24ABE(4)   [Taxpayers deriving bereavement lump sum payments]  

If a taxpayer derives a payment under section 190 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 does 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.

24ABE(5)   [Payment under s 186 of Social Security Act]  

For the purposes of this section, a payment under section 186 of the Social Security Act 1991 is taken to be a payment of a wife pension.