INCOME TAX ASSESSMENT ACT 1997
A death benefits dependant , of a person who has died, is:
(a) the deceased person ' s *spouse or former spouse; or
(b) the deceased person ' s *child, aged less than 18; or
(c) any other person with whom the deceased person had an interdependency relationship under section 302-200 just before he or she died; or
(d) any other person who was a dependant of the deceased person just before he or she died. 302-195(2)
For the purposes of this Division, treat an individual who receives a *superannuation lump sum because of the death of another person as a death benefits dependant of the deceased person in relation to the lump sum if the deceased person *died in the line of duty (see subsection (3)) as:
(a) a member of the Defence Force; or
(b) a member of the Australian Federal Police or the police force of a State or Territory; or
(c) a protective service officer (within the meaning of the Australian Federal Police Act 1979 ).
For the purposes of subsection (2), a person died in the line of duty if the person died in the circumstances specified in the regulations.
No 79 of 2007
, s 3 and Sch 4 item 5 contains the following provision:
Payments by Commissioner in relation to lump sums paid before 1 July 2007
To avoid doubt, nothing in any taxation law (within the meaning of the Income Tax Assessment Act 1997 ) prevents the Commissioner of Taxation (on behalf of the Commonwealth) from making an ex-gratia payment in relation to the tax treatment of a superannuation lump sum received in an income year ending before 1 July 2007 if:
(a) the lump sum is received by a person because of the death of another person; and
(b) the person who received the lump sum is not a dependant of the deceased person.