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 24ABF   CARER PAYMENT  

24ABF(1)   [Tax treatment of carer payment]  

The treatment of payments of carer payment under Part 2.5 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	Severely handicapped person not under pension age	Exempt	Not exempt
3	Both taxpayer and severely handicapped person under pension age	Exempt	Exempt
4	(a) Taxpayer under pension age; and (b) Severely handicapped person deceased	Exempt	Exempt

24ABF(2)   [Limitations of table]  

Subsection (1) has effect subject to:

(a) subsection (4) (which deals with taxpayers who derive bereavement lump sum payments under section 239 of the Social Security Act 1991 ); and

(b) subsection (4A) (which deals with taxpayers who derive bereavement lump sum payments under section 236A of the Social Security Act 1991 ).

24ABF(3)   [Exempt bereavement payments]  

Payments under sections 238, 241 and 246 of the Social Security Act 1991 (which deal with bereavement payments) are exempt.

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

If a taxpayer derives a payment under section 239 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.

24ABF(4A)   [Bereavement sums under s 236A of Social Security Act]  

If a taxpayer derives a payment under section 236A 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 AA in section 24ABZC is exempt; and

(b) the balance of the sum is not exempt.

24ABF(5)   [Pension payments after death of partner]  

If:

(a) a taxpayer's partner died; and

(b) the taxpayer would have been qualified for payments under a bereavement Subdivision but for an exclusion provision (taxpayer's pension or allowance increased on partner's death to such an extent that no bereavement payments); and

(c) the taxpayer derives payments of carer pension under Part 2.5 of the Social Security Act 1991 on one or more of the 7 pension paydays after the death;

then those payments on that payday or each of those paydays are not treated under subsection (1) but as follows:

(d) the supplementary amounts are exempt;

(e) so much of the balance as exceeds what would have been the balance (payments less supplementary amounts) if the partner had not died is exempt;

(f) the rest of the balance is not exempt.

24ABF(6)   [Excepted paydays]  

Subsection (5) does not apply to a payday on which item 3 or 4 of subsection (1) applies to the taxpayer (payments exempt).