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INCOME TAX ASSESSMENT ACT 1997 - SECT 52.65

How much of a veterans' affairs payment is exempt?

  (1)   The table in this section tells you about the income tax treatment of veterans' affairs payments, other than:

  (a)   payments of pension bonus or pension 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

  (c)   one - off energy assistance payments under the Veterans' Entitlements Act 1986 ; or

  (d)   first 2020 economic support payments under the Veterans' Entitlements Act 1986 ; or

  (da)   second 2020 economic support payments under the Veterans' Entitlements Act 1986 ; or

  (db)   payments of additional economic support payment 2020 under the Veterans' Entitlements Act 1986 ; or

  (dc)   payments of additional economic support payment 2021 under the Veterans' Entitlements Act 1986 ; or

  (e)   a prisoner of war recognition supplement under Part   VIB of the Veterans' Entitlements Act 1986 ; or

  (f)   a 2022 cost of living payment under 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.

  (1A)   Payments of pension bonus and pension bonus bereavement payment under Part   IIIAB of the Veterans' Entitlements Act 1986 are exempt from income tax.

  (1E)   A lump sum payment under section   198N of the Veterans' Entitlements Act 1986 is exempt from income tax.

  (1F)   A prisoner of war recognition supplement under Part   VIB of the Veterans' Entitlements Act 1986 is exempt from income tax.

  (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).

  (1GA)   One - off energy assistance payments under Part   IIIF of the Veterans' Entitlements Act 1986 are exempt from income tax.

  (1H)   One - off energy assistance payments under Part   IIIG of the Veterans' Entitlements Act 1986 are exempt from income tax.

  (1J)   The following payments are exempt from income tax:

  (a)   first 2020 economic support payments under Division   1 of Part   IIIH of the Veterans' Entitlements Act 1986 ;

  (b)   second 2020 economic support payments under Division   2 of Part   IIIH of the Veterans' Entitlements Act 1986 .

  (1K)   The following payments are exempt from income tax:

  (a)   additional economic support payment 2020 under Division   1 of Part   IIIJ of the Veterans' Entitlements Act 1986 ;

  (b)   additional economic support payment 2021 under Division   2 of Part   IIIJ of the Veterans' Entitlements Act 1986 .

  (1L)   2022 cost of living payment under Division   1 of Part   IIIK of the Veterans' Entitlements Act 1986 is exempt from income tax.

  (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.

Note:   Pension age has the meaning given by subsection   23(1) of the Social Security Act 1991 : see subsection   995 - 1(1).

  (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

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

20.1

Travelling expenses

Exempt

Not applicable

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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