Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) A compensation payment for the loss of pay or an allowance for your warlike service is exempt from income tax if:
(a) the compensation payment is made under the Safety, Rehabilitation and Compensation (Defence - related Claims) Act 1988 in respect of an injury (as defined in that Act) you suffered; and
(b) you suffered your injury while covered by a certificate in force under paragraph 23AD(1)(a) of the Income Tax Assessment Act 1936 ; and
(c) your injury or disease caused the loss of your pay or allowance; and
(d) your pay or allowance was payable under the Defence Act 1903 or under a determination under that Act.
(2) A compensation payment for the loss of pay or an allowance for your warlike service is exempt from income tax if:
(a) the compensation payment is made under the Military Rehabilitation and Compensation Act 2004 in respect of a service injury or disease (as defined in that Act); and
(b) you sustained your service injury or contracted your service disease, or your service injury or disease was aggravated or materially contributed to, while covered by a certificate in force under paragraph 23AD(1)(a) of the Income Tax Assessment Act 1936 ; and
(c) your injury or disease caused the loss of your pay or allowance; and
(d) your pay or allowance was payable under the Defence Act 1903 or under a determination under that Act.
(3) Subsections (4) and (5) apply to:
(a) a deployment allowance; or
(b) some other allowance that is exempt from income tax specified in writing by the * Defence Minister for the purposes of this subsection;
that is payable under a determination under the Defence Act 1903 for your non - warlike service.
(4) A compensation payment for the loss of the allowance is exempt from income tax if:
(a) the compensation payment is made under the Safety, Rehabilitation and Compensation (Defence - related Claims) Act 1988 in respect of an injury (as defined in that Act) you suffered; and
(b) your injury caused the loss of your allowance.
(5) A compensation payment for the loss of the allowance is exempt from income tax if:
(a) the compensation payment is made under the Military Rehabilitation and Compensation Act 2004 in respect of a service injury or disease (as defined in that Act); and
(b) your injury or disease caused the loss of your allowance.