Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-15 - NON-ASSESSABLE INCOME  

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

Subdivision 52-B - Exempt payments under the Veterans ' Entitlements Act 1986  

Operative provisions

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

52-65(1)    


The table in this section tells you about the income tax treatment of veterans ' affairs payments, other than:

(a)    

payments of pension bonus or pension bonus bereavement payment; or

(b)    

clean energy payments; or

(ba)    

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

(bb)    

(Repealed by No 12 of 2012)

(c)    

one-off energy assistance payments under the Veterans ' Entitlements Act 1986 ; or

(d)    

first 2020 economic support payments under the Veterans ' Entitlements Act 1986 ; or

(da)    

second 2020 economic support payments under the Veterans ' Entitlements Act 1986 ; or

(db)    

payments of additional economic support payment 2020 under the Veterans ' Entitlements Act 1986 ; or

(dc)    

payments of additional economic support payment 2021 under the Veterans ' Entitlements Act 1986 ; or

(e)    

a prisoner of war recognition supplement under Part VIB of the Veterans ' Entitlements Act 1986 ; or

(f)    

a 2022 cost of living payment under the Veterans ' Entitlements Act 1986 .
Note:

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


52-65(1A)    


Payments of pension bonus and pension bonus bereavement payment under Part IIIAB of the Veterans ' Entitlements Act 1986 are exempt from income tax.

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(Repealed by No 12 of 2012)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(Repealed by No 19 of 2008)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(Repealed by No 12 of 2012)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(Repealed by No 128 of 2017)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)    


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

52-65(1F)    


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

52-65(1G)    


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 ).


52-65(1GA)    


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

52-65(1H)    
One-off energy assistance payments under Part IIIG of the Veterans ' Entitlements Act 1986 are exempt from income tax.


52-65(1J)    


The following payments are exempt from income tax:

(a)    first 2020 economic support payments under Division 1 of Part IIIH of the Veterans ' Entitlements Act 1986 ;

(b)    second 2020 economic support payments under Division 2 of Part IIIH of the Veterans ' Entitlements Act 1986


52-65(1K)    


The following payments are exempt from income tax:

(a)    additional economic support payment 2020 under Division 1 of Part IIIJ of the Veterans ' Entitlements Act 1986 ;

(b)    additional economic support payment 2021 under Division 2 of Part IIIJ of the Veterans ' Entitlements Act 1986 .


52-65(1L)    


2022 cost of living payment under Division 1 of Part IIIK of the Veterans ' Entitlements Act 1986 is exempt from income tax.

52-65(2)    
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.

Note:

Pension age has the meaning given by subsection 23(1) of the Social Security Act 1991 : see subsection 995-1(1) .


52-65(3)    
(Repealed by No 94 of 2019)


52-65(4)    
Ordinary payment means a payment other than a payment made because of a person ' s death.


Income tax treatment of veterans ' affairs payments
Item Category of veterans ' affairs payment Ordinary payment Payment made because of a person ' s death
1.1 Age service pension Supplementary amount is exempt (see section 52-70 ) Exempt
.
2.1 Attendant allowance Exempt Not applicable
.
3.1 Carer service pension: unless covered by item 3.2 or 3.3 Supplementary amount is exempt (see section 52-70 ) Exempt
.
3.2 Carer service pension: both you and your partner are under pension age and your partner is receiving an invalidity service pension Exempt Exempt
.
3.3 Carer service pension: you are under pension age, your partner has died and was receiving an invalidity service pension at death Exempt Exempt
.
4.1 Clothing allowance Exempt Not applicable
.
5.1 Decoration allowance Exempt Not applicable
.
5A.1 (Repealed by No 142 of 2021)    
.
6.1 Income support supplement: unless covered by item 6.2, 6.3, 6.4 or 6.5 Supplementary amount is exempt (see section 52-70 ) Exempt
.
6.2 Income support supplement: you are under pension age and receiving the supplement on the grounds of permanent incapacity Exempt Exempt
.
6.3 Income 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 person Exempt Exempt
.
6.4 Income support supplement: both you and your partner are under pension age and your partner is an invalidity service pensioner or a disability support pensioner Exempt Exempt
.
6.5 Income support supplement: both you and your partner are under pension age and your partner is receiving the supplement on the grounds of permanent incapacity Exempt Exempt
.
7.1 Invalidity service pension: you are pension age or over Supplementary amount is exempt (see section 52-70 ) Exempt
.
7.2 Invalidity service pension: you are under pension age Exempt Exempt
.
8.1 Loss of earnings allowance Exempt Not applicable
.
9.1 Partner service pension: unless covered by item 9.2 or 9.3 Supplementary amount is exempt (see section 52-70 ) Exempt
.
9.2 Partner service pension: both you and your partner are under pension age and your partner is receiving an invalidity service pension Exempt Exempt
.
9.3 Partner service pension: you are under pension age, your partner has died and was receiving an invalidity service pension at death Exempt Exempt
.
10.1 Pension for defence-caused death or incapacity Exempt Not applicable
.
11.1 Pension for war-caused death or incapacity Exempt Not applicable
.
12.1 Quarterly pension supplement Exempt Not applicable
.
13.1 Recreation transport allowance Exempt Not applicable
.
14.1 Section 98A Bereavement payment Not applicable Exempt
.
14.2 Section 98AA Bereavement payment Not applicable Exempt
.
15.1 Section 99 funeral benefit Not applicable Exempt
.
16.1 Section 100 funeral benefit Not applicable Exempt
.
16A.1 Energy supplement under Part VIIAD of the Veterans ' Entitlements Act 1986 Exempt Not applicable
.
17.1 Special assistance Exempt Not applicable
.
18.1 (Repealed by No 81 of 2009)    
.
19.1 (Repealed by No 95 of 2011)    
.
20.1 Travelling expenses Exempt Not applicable
.
20A.1 (Repealed by No 81 of 2009)    
.
21.1 Vehicle Assistance Scheme Exempt Not applicable
.
21AA.1 Veteran payment Supplementary amount is exempt (see section 52-70 ) Exempt
.
21A.1 Veterans supplement Exempt Not applicable
.
22.1 Victoria Cross allowance Exempt Not applicable



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