Income Tax Assessment Act 1997

Pt 2-15 (heading) substituted by No 66 of 2003.

Pt 2-15 inserted by No 121 of 1997.

Div 52 inserted by No 121 of 1997.

S 52-65(1) amended by No 17 of 2025, s 3 and Sch 8 item 39, by repealing para (ba) and (e), effective 1 July 2026. No 17 of 2025, s 3 and Sch 8 item 52 contain the following saving provisions:

52 Saving provisions  
(1)
Paragraph 52-65(1)(ba) of the Income Tax Assessment Act 1997 and subsection 52-65(1G) of that Act, as in force immediately before the day this item commences, continue to apply on and after that day in relation to a clean energy payment that is made before, on or after that day under the scheme prepared under Part VII of the Veterans ' Entitlements Act 1986 .

(2)
Paragraph 52-65(1)(e) of the Income Tax Assessment Act 1997 and subsection 52-65(1F) of that Act, as in force immediately before the day this item commences, continue to apply on and after that day in relation to a payment of a prisoner of war recognition supplement under Part VIB of the Veterans ' Entitlements Act 1986 made before, on or after that day.

(3)
Item 5.1 of the table in section 52-65 of the Income Tax Assessment Act 1997 , as in force immediately before the day this item commences, continues to apply on and after that day in relation to a payment of decoration allowance made before, on or after that day.

(4)
Item 15.1 of the table in section 52-65 of the Income Tax Assessment Act 1997 , as in force immediately before the day this item commences, continues to apply on and after that day in relation to a payment of a section 99 funeral benefit made before, on or after that day.

(5)
Item 16.1 of the table in section 52-65 of the Income Tax Assessment Act 1997 , as in force immediately before the day this item commences, continues to apply on and after that day in relation to a payment of a section 100 funeral benefit made before, on or after that day.

(6)
Item 20.1 of the table in section 52-65 of the Income Tax Assessment Act 1997 , as in force immediately before the day this item commences, continues to apply on and after that day in relation to a payment of travelling expenses made before, on or after that day.

(7)
Item 22.1 of the table in section 52-65 of the Income Tax Assessment Act 1997 , as in force immediately before the day this item commences, continues to apply on and after that day in relation to a payment of Victoria Cross allowance made before, on or after that day.

(8)
Subparagraph 52-145(1)(b)(iii) of the Income Tax Assessment Act 1997 , as in force immediately before the day this item commences, continues to apply on and after that day in relation to a payment of an allowance or reimbursement under the scheme known as the Veterans ' Children Education Scheme.

Para (ba) and (e) formerly read:

(ba) clean energy payments under the scheme prepared under Part VII (about educating veterans ' children) of the Veterans ' Entitlements Act 1986 ; or
(e) a prisoner of war recognition supplement under Part VIB of the Veterans ' Entitlements Act 1986 ; or

S 52-65(1) amended by No 14 of 2022, s 3 and Sch 8 item 5, by inserting para (f), effective 1 April 2022.

S 52-65(1) amended by No 142 of 2021, s 3 and Sch 1 item 16, by substituting " or pension bonus bereavement payment " for " , pension bonus bereavement payment, DFISA bonus or DFISA bonus bereavement payment " in para (a), effective 1 January 2022.

S 52-65(1) amended by No 97 of 2020, s 3 and Sch 1 item 33, by inserting para (db) and (dc), effective 14 November 2020.

S 52-65(1) amended by No 22 of 2020, s 3 and Sch 4 item 17, by inserting para (d) and (da), effective 25 March 2020.

S 52-65(1) amended by No 128 of 2017, s 3 and Sch 8 item 13, by repealing para (d) and (da), effective 1 December 2017. Para (d) and (da) formerly read:

(d) economic security strategy payment under the Veterans ' Entitlements Act 1986 ; or

(da) ETR payments under the Veterans ' Entitlements Act 1986 ; or

S 52-65(1) amended by No 46 of 2017, s 3 and Sch 1 item 14, by inserting para (c), effective 19 June 2017.

S 52-65(1) amended by No 96 of 2014, s 3 and Sch 8 item 19, by repealing para (c), effective 31 December 2016. Para (c) formerly read:

(c) payments of income support bonus under the scheme prepared under Part VII (about educating veterans ' children) of the Veterans ' Entitlements Act 1986 ; or

S 52-65(1) amended by No 5 of 2013, s 3 and Sch 1 item 17, by inserting para (c), effective 5 March 2013.

S 52-65(1) amended by No 58 of 2012, s 3 and Sch 4 item 4, by inserting para (ba), applicable in relation to payments made in the 2011-12 income year or a later income year.

S 52-65(1) amended by No 50 of 2012, s 3 and Sch 3 item 5, by inserting para (da), effective 27 May 2012.

S 52-65(1) amended by No 12 of 2012, s 3 and Sch 6 item 121, by repealing para (bb) and (c), effective 21 March 2012. Para (bb) and (c) formerly read:

(bb) 2008 one-off payment to older Australians; or

(c) payments under a scheme referred to in subsection (1C); or

S 52-65(1) amended by No 141 of 2011, s 3 and Sch 10 item 11, by inserting para (b), effective 14 May 2012.

S 52-65(1) amended by No 95 of 2011, s 3 and Sch 1 item 8, by inserting para (e), effective 20 September 2011.

S 52-65(1) amended by No 131 of 2008, s 3 and Sch 5 item 8, by inserting para (d) before the note, effective 1 December 2008.

S 52-65(1) amended by No 97 of 2008 , s 3 and Sch 3 item 75, by repealing former para (b) and para (ba), effective 3 October 2008. Paras (b) and (ba) formerly read:

(b) 2006 one-off payment to older Australians; or

(ba) 2007 one-off payment to older Australians; or

S 52-65(1) amended by No 19 of 2008, s 3 and Sch 1 item 22, by inserting para (bb), effective 26 May 2008.

S 52-65(1) amended by No 183 of 2007, s 3 and Sch 1 item 5, by substituting " , pension bonus bereavement payment, DFISA bonus or DFISA bonus bereavement payment " for " or DFISA bonus " in para (a), effective 1 January 2008.

S 52-65(1) amended by No 66 of 2007, s 3 and Sch 1 items 22 and 23, by inserting para (ba) and substituting " a scheme " for " the scheme " in para (c), effective 11 May 2007.

S 52-65(1) (except the note) substituted by No 41 of 2006, s 3 and Sch 1 item 12, effective 22 May 2006. S 52-65(1) formerly read:

52-65(1)
The table in this section tells you about the income tax treatment of veterans ' affairs payments (other than payments of pension bonus or DFISA bonus).

S 52-65(1) amended by No 100 of 2004 and No 67 of 1998.

S 52-65(1A) substituted by No 142 of 2021, s 3 and Sch 1 item 17, effective 1 January 2022. No 142 of 2021, s 3 and Sch 1 item 20 contain the following saving provisions:

20 Saving provisions  
(1)
Subsection 52-65(1A) of the Income Tax Assessment Act 1997 , as in force immediately before the commencement of this item, continues to apply on and after that commencement in relation to a payment of DFISA bonus or DFISA bonus bereavement payment under Part VIIAB of the Veterans ' Entitlements Act 1986 made before, on or after the commencement of this item.

(2)
Item 5A.1 of the table in section 52-65 of the Income Tax Assessment Act 1997 , as in force immediately before the commencement of this item, continues to apply on and after that commencement in relation to a payment of Defence Force Income Support Allowance made before, on or after the commencement of this item.

S 52-65(1A) formerly read:

52-65(1A)
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.

S 52-65(1A) substituted by No 183 of 2007, s 3 and Sch 1 item 6, effective 1 January 2008. S 52-65(1A) formerly read:

52-65(1A)
Payments of pension bonus under Part IIIAB or DFISA bonus under Part VIIAB of the Veterans ' Entitlements Act 1986 are exempt from income tax.

S 52-65(1A) amended by No 100 of 2004 and inserted by No 67 of 1998.

S 52-65(1B) repealed by No 12 of 2012, s 3 and Sch 6 item 122, effective 21 March 2012. S 52-65(1B) formerly read:

52-65(1B)
Payments of 2008 one-off payment to older Australians under Part VIIF of the Veterans ' Entitlements Act 1986 are exempt from income tax.

S 52-65(1B) substituted by No 97 of 2008 , s 3 and Sch 3 item 76, effective 3 October 2008. S 52-65(1B) formerly read:

52-65(1B)
The following one-off payments under the Veterans ' Entitlements Act 1986 are exempt from income tax:

(a) 2006 one-off payment to older Australians under Part VIID;

(b) 2007 one-off payment to older Australians under Part VIIE;

(c) 2008 one-off payment to older Australians under Part VIIF.

S 52-65(1B) substituted for s 52-65(1B) and (1BA) by No 19 of 2008, s 3 and Sch 1 item 23, effective 26 May 2008. S 52-65(1B) formerly read:

52-65(1B)
Payments of 2006 one-off payment to older Australians under Part VIID of the Veterans ' Entitlements Act 1986 are exempt from income tax.

S 52-65(1B) inserted by No 41 of 2006, s 3 and Sch 1 item 13, effective 22 May 2006.

S 52-65(1B) substituted for s 52-65(1B) and (1BA) by No 19 of 2008, s 3 and Sch 1 item 23, effective 26 May 2008. S 52-65(1BA) formerly read:

52-65(1BA)
Payments of 2007 one-off payment to older Australians under Part VIIE of the Veterans ' Entitlements Act 1986 are exempt from income tax.

S 52-65(1BA) inserted by No 66 of 2007, s 3 and Sch 1 item 24, effective 11 May 2007.

S 52-65(1C) repealed by No 12 of 2012, s 3 and Sch 6 item 122, effective 21 March 2012. S 52-65(1C) formerly read:

52-65(1C)
Payments to older Australians under a scheme determined under item 2 of Schedule 2 to the Social Security and Veterans ' Entitlements Legislation Amendment (One-off Payments and Other Budget Measures) Act 2008 are exempt from income tax.

S 52-65(1C) substituted by No 97 of 2008 , s 3 and Sch 3 item 77, effective 3 October 2008. S 52-65(1C) formerly read:

52-65(1C)
Payments to older Australians under the following schemes are exempt from income tax:

(a) a scheme determined under item 2 of Schedule 2 to the Social Security and Veterans ' Entitlements Legislation Amendment (One-off Payments to Increase Assistance for Older Australians and Carers and Other Measures) Act 2006 ;

(b) a scheme determined under item 2 of Schedule 2 to the Social Security and Veterans ' Affairs Legislation Amendment (One-off Payments and Other 2007 Budget Measures) Act 2007 ;

(c) a scheme determined under item 2 of Schedule 2 to the Social Security and Veterans ' Entitlements Legislation Amendment (One-off Payments and Other Budget Measures) Act 2008 .

S 52-65(1C) amended by No 19 of 2008, s 3 and Sch 1 item 24, by inserting para (c) at the end, effective 26 May 2008.

S 52-65(1C) substituted by No 66 of 2007, s 3 and Sch 1 item 25, effective 11 May 2007. S 52-65(1C) formerly read:

52-65(1C)
Payments to older Australians under the scheme determined under item 2 of Schedule 2 to the Social Security and Veterans ' Entitlements Legislation Amendment (One-off Payments to Increase Assistance for Older Australians and Carers and Other Measures) Act 2006 are exempt from income tax.

S 52-65(1C) inserted by No 41 of 2006, s 3 and Sch 1 item 13, effective 22 May 2006.

S 52-65(1D) repealed by No 128 of 2017, s 3 and Sch 8 item 14, effective 1 December 2017. S 52-65(1D) formerly read:

52-65(1D)
Economic security strategy payment under the Veterans ' Entitlements Act 1986 is exempt from income tax.

S 52-65(1D) inserted by No 131 of 2008, s 3 and Sch 5 item 9, effective 1 December 2008.

S 52-65(1E) inserted by No 80 of 2009, s 3 and Sch 1 item 14, effective 10 September 2009.

S 52-65(1F) repealed by No 17 of 2025, s 3 and Sch 8 item 40, effective 1 July 2026. For saving provisions, see note under s 52-65(1) . S 52-65(1F) formerly read:

52-65(1F)
A prisoner of war recognition supplement under Part VIB of the Veterans ' Entitlements Act 1986 is exempt from income tax.

S 52-65(1F) inserted by No 95 of 2011, s 3 and Sch 1 item 9, effective 20 September 2011.

S 52-65(1G) substituted by No 17 of 2025, s 3 and Sch 8 item 40, effective 1 July 2026. For saving provisions, see note under s 52-65(1) . S 52-65(1G) formerly read:

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).

S 52-65(1G) substituted by No 58 of 2012, s 3 and Sch 4 item 5, applicable in relation to payments made in the 2011-12 income year or a later income year. S 52-65(1G) formerly read:

52-65(1G)
Clean energy payments under the Veterans ' Entitlements Act 1986 are exempt from income tax.

S 52-65(1G) inserted by No 141 of 2011, s 3 and Sch 10 item 12, effective 14 May 2012.

S 52-65(1GA) inserted by No 46 of 2017, s 3 and Sch 1 item 15, effective 19 June 2017.

S 52-65(1H) inserted by No 28 of 2019, s 3 and Sch 1 item 12, effective 6 April 2019.

S 52-65(1H) repealed by No 128 of 2017, s 3 and Sch 8 item 14, effective 1 December 2017. S 52-65(1H) formerly read:

52-65(1H)
ETR payments under Part VIIH of the Veterans ' Entitlements Act 1986 are exempt from income tax.

S 52-65(1H) inserted by No 50 of 2012, s 3 and Sch 3 item 6, effective 27 May 2012.

S 52-65(1J) inserted by No 22 of 2020, s 3 and Sch 4 item 18, effective 25 March 2020.

S 52-65(1K) inserted by No 97 of 2020, s 3 and Sch 1 item 34, effective 14 November 2020.

Former s 52-65(1K) repealed by No 96 of 2014, s 3 and Sch 8 item 20, effective 31 December 2016. No 96 of 2014, s 3 and Sch 8 item 26 contains the following saving provision:

Part 3 - Saving provisions

26 Saving provisions  
…

26(4)
Despite the amendment made by item 20, subsection 52-65(1K) of the Income Tax Assessment Act 1997 , as in force immediately before the commencement of this item, continues to apply on and after that commencement in relation to payments of income support bonus made before, on or after that commencement under the scheme prepared under Part VII of the Veterans ' Entitlements Act 1986 .

…

Former s 52-65(1K) formerly read:

52-65(1K)
Payments of income support bonus under the scheme prepared under Part VII (about educating veterans ' children) of the Veterans ' Entitlements Act 1986 are exempt from income tax.

Former s 52-65(1K) inserted by No 5 of 2013, s 3 and Sch 1 item 18, effective 5 March 2013.

S 52-65(1L) inserted by No 14 of 2022, s 3 and Sch 8 item 6, effective 1 April 2022.

S 52-65(2) amended by No 94 of 2019, s 3 and Sch 1 item 7, by inserting the note, effective 29 October 2019.

S 52-65(3) repealed by No 94 of 2019, s 3 and Sch 1 item 8, effective 29 October 2019. S 52-65(3) formerly read:

52-65(3)
Pension age has the meaning given by subsection 23(1) of the Social Security Act 1991 .

S 52-65 (table) amended by No 17 of 2025, s 3 and Sch 8 item 41, by repealing table items 5.1, 15.1, 16.1, 20.1 and 22.1, effective 1 July 2026. For saving provisions, see note under s 52-65(1) . Table items 5.1, 15.1, 16.1, 20.1 and 22.1 formerly read:

5.1	Decoration allowance	Exempt	Not applicable
15.1	Section 99 funeral benefit	Not applicable	Exempt
16.1	Section 100 funeral benefit	Not applicable	Exempt
20.1	Travelling expenses	Exempt	Not applicable
22.1	Victoria Cross allowance	Exempt	Not applicable

S 52-65 (table) amended by No 142 of 2021, s 3 and Sch 1 item 18, by repealing table item 5A.1, effective 1 January 2022. For saving provisions, see note under s 52-65(1A) . Table item 5A.1 formerly read:

5A.1

Defence 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 52-10

Exempt

Not applicable

S 52-65 (table) amended by No 17 of 2018, s 3 and Sch 2 item 47, by inserting table item 21AA.1, effective 1 May 2018.

S 52-65 (table) amended by No 91 of 2015, s 3 and Sch 1 item 51, by substituting " Energy supplement under Part VIIAD of the Veterans ' Entitlements Act 1986 " for " Seniors supplement " in table item 16A.1, effective 20 June 2015. For saving provision, see note under s 52-10 .

S 52-65 (table) amended by No 95 of 2011, s 3 and Sch 3 item 1, by repealing table item 19.1, effective 20 September 2011. No 95 of 2011, s 3 and Sch 3 item 15 contains the following transitional provision:

15 Transitional  
(1)
Despite the amendment made by item 1, table item 19.1 in section 52-65 of the Income Tax Assessment Act 1997 (as in force immediately before the commencement of this item) continues to apply on and after that commencement in relation to payments of temporary incapacity allowance made before, on or after that commencement.

...

Table item 19.1 formerly read:

19.1 ... Temporary incapacity allowance ... Exempt ... Not applicable

S 52-65 (table) amended by No 81 of 2009, s 3 and Sch 4 items 54 to 58, by substituting table items 12.1 and 16A.1, repealing table items 18.1 and 20A.1 and inserting table item 21A.1, effective 20 September 2009.

Application and savings provisions

Act No 81 of 2009, Sch 4 item 212(2), reads: " Despite the amendment made by item 54, table item 12.1 (as in force immediately before 20 September 2009) continues to apply on and after that commencement in relation to payments of pharmaceutical allowance made before, on or after that commencement. "

Act No 81 of 2009, Sch 4 item 209(3) reads: " Despite the amendment made by item 55, table item 16A.1 (as in force immediately before 20 September 2009) continues to apply on and after that commencement in relation to payments of seniors concession allowance made before, on or after that commencement. "

Act No 81 of 2009, Sch 4 item 211(3) reads: " Despite the amendment made by item 56, table item 18.1 (as in force immediately before 20 September 2009) continues to apply on and after that commencement in relation to payments of telephone allowance made before, on or after that commencement. "

Act No 81 of 2009, Sch 4 item 210(3) reads: " Despite the amendment made by item 57, table item 20A.1 (as in force immediately before 20 September 2009) continues to apply on and after that commencement in relation to payments of utilities allowance made before, on or after that commencement. "

Table items 12.1, 16A.1, 18.1 and 20A.1 formerly read:

12.1 ... Pharmaceutical allowance ... Exempt ... Not applicable

16A.1 ... Seniors concession allowance ... Exempt ... Not applicable

18.1 ... Telephone allowance ... Exempt ... Not applicable

20A.1 ... Utilities allowance ... Exempt ... Not applicable

S 52-65 (table) amended by No 48 of 2008, s 3 and Sch 3 item 1, by inserting table item 14.2, applicable in relation to bereavement payments received during the 2008-09 income year and later income years.

S 52-65 (table) amended by No 89 of 2007, s 3 and Sch 5 item 1, by substituting table item 5A.1, effective 1 July 2007. The item formerly read:

5A.1 ... Defence Force Income Support Allowance: the social security pension or 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 52-10 ... Exempt ... Not applicable

S 52-65 (table) amended by No 132 of 2004 and No 100 of 2004.

S 52-65 inserted by No 121 of 1997.