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, pension bonus bereavement payment, DFISA bonus or DFISA 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(bb) (Repealed by No 12 of 2012)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(d) - (da) (Repealed by No 128 of 2017)


(e) a prisoner of war recognition supplement under Part VIB of 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)  


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.

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(Repealed by No 12 of 2012)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(Repealed by No 19 of 2008)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(Repealed by No 12 of 2012)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(Repealed by No 128 of 2017)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(Repealed by No 128 of 2017)

52-65(1K)  
(Repealed by No 96 of 2014)

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.

52-65(3)  


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

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 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
.
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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