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-CA - Exempt payments under the Military Rehabilitation and Compensation Act 2004  

Operative provisions

SECTION 52-114   How much of a payment under the Military Rehabilitation and Compensation Act is exempt?  

52-114(1)  
The table in this section tells you about the income tax treatment of payments under the Military Rehabilitation and Compensation Act 2004 . References in the table to provisions are to provisions of that Act.

52-114(2)  
Expressions used in this Subdivision that are also used in the Military Rehabilitation and Compensation Act 2004 have the same meanings as in that Act.

52-114(3)  
Ordinary payment means a payment other than a payment made because of a person ' s death.


Income tax treatment of Military Rehabilitation and Compensation Act payments
Item Category of payment and provision under which it is paid Ordinary payment Payment because of a person ' s death
1 Alterations to aids and appliances relating to rehabilitation (section 57) Exempt Not applicable
2 Compensation for journey and accommodation costs (sections 47, 290, 291 and 297 and subsection 328(4)) Exempt Not applicable
3 Compensation for permanent impairment (sections 68, 71, 75 and 80) Exempt Exempt
4 Compensation for financial advice or legal advice (sections 81, 205 and 239) Exempt Not applicable
5 Compensation for incapacity for Permanent Forces member or continuous full-time Reservist (section 85) See section 51-32 Exempt
6 Compensation for incapacity for part-time Reservists (section 86) See section 51-33 Exempt
7 Compensation by way of Special Rate Disability Pension (section 200) Exempt Not applicable
8 Compensation under the Motor Vehicle Compensation Scheme (section 212) Exempt Not applicable
9 Compensation for household services and attendant care services (sections 214 and 217) Exempt Not applicable
10 MRCA supplement (sections 221, 245 and 300) Exempt Not applicable
11 Compensation for loss or damage to medical aids (section 226) Exempt Not applicable
12 Compensation for a wholly dependent partner for a member ' s death (section 233) Not applicable Exempt
13 Continuing permanent impairment and incapacity etc. compensation for a wholly dependent partner (subparagraphs 242(1)(a)(i) and (iii)) Not applicable Exempt
14 Compensation for eligible young persons who were dependent on deceased member (section 253) Not applicable Exempt
15 Continuing permanent impairment and incapacity etc. compensation for eligible young persons (subparagraphs 255(1)(c)(i) and (iii)) Not applicable Exempt
16 Education and training, or a payment, under the education scheme for certain eligible young persons (section 258) Exempt if:
(a) provided for or made to a person under 16; or
(b) a clean energy payment
Exempt
16A (Repealed by No 96 of 2014)
17 Compensation for other persons who were dependent on deceased member (section 262) Not applicable Exempt
18 Compensation for cost of a funeral (section 266) Not applicable Exempt
19 Compensation for treatment costs (sections 271, 272 and 273) Exempt Not applicable
20 (Repealed by No 81 of 2009)
21 Special assistance (section 424) Exempt Exempt
22 Clean energy payment (sections 83A, 209A and 238A) Exempt Not applicable

Note:

The supplementary amount of a payment covered by item 16 of the table made to a person aged 16 or over is also exempt from income tax (see section 52-140 ).


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