Income Tax Assessment Act 1997



Division 768 - Foreign non-assessable income and gains  

Subdivision 768-B - Some items of income that are exempt from income tax  

SECTION 768-105   Compensation arising out of Second World War  

A payment to you is exempt from income tax if:

(a) you are an Australian resident at the time when it would otherwise be included in your assessable income; and

(b) the payment is from a source in a foreign country; and

(c) the payment is in connection with:

(i) any wrong or injury; or

(ii) any loss of, or damage to, property; or

(iii) any other detriment;
suffered by you or another individual as a result of:

(iv) persecution by the National Socialist regime of Germany during the National Socialist period; or

(v) persecution during the Second World War by any other enemy of the Commonwealth or by a regime covered by subsection (3); or

(vi) flight from persecution mentioned in subparagraph (iv) or (v); or

(vii) participation in a resistance movement during the Second World War against forces of the National Socialist regime of Germany or against forces of any other enemy of the Commonwealth; and

(d) the payment is not directly or indirectly from any of your *associates.


An example of a detriment covered by subparagraph (c)(iii) is if you lost the opportunity to qualify for a pension because your period of contribution was cut short because you had to flee persecution by the National Socialist regime.

Duration of Second World War

Subsection (1) applies to:

(a) the period immediately before the Second World War; and

(b) the period immediately after the Second World War;

in the same way as it applies to the period of the Second World War.

Regimes associated with an enemy of the Commonwealth

This subsection covers a regime that was:

(a) in alliance with; or

(b) occupied by; or

(c) effectively controlled by; or

(d) under duress from; or

(e) surrounded by;

either or both of the following:

(f) the National Socialist regime of Germany;

(g) any other enemy of the Commonwealth.

Legal personal representative

Subsection (1) applies to a payment to:

(a) your *legal personal representative; or

(b) a trust established by your will;

in a corresponding way to the way in which it would have applied if:

(c) the payment had been to you; and

(d) if the payment is made after your death - you were still alive.

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