Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 51.50

  (1)   This section sets out the conditions on which a periodic payment, in the nature of maintenance, that:

  (a)   is made by an individual (the maintenance payer ); or

  (b)   is attributable to a payment made by an individual (also the maintenance payer );

is exempt from income tax under item   5.1 of the table in section   51 - 30.

  (2)   The maintenance payment is exempt from income tax only if it is made:

  (a)   to an individual who is or has been the maintenance payer's * spouse; or

  (b)   to or for the benefit of an individual who is or has been:

  (i)   a * child of the maintenance payer; or

  (ii)   a child who is or has been a child of an individual who is or has been a * spouse of the maintenance payer.

  (3)   The maintenance payment is not exempt if, in order to make it or a payment to which it is attributable, the maintenance payer:

  (a)   divested any income - producing assets; or

  (b)   diverted * ordinary income or * statutory income upon which the maintenance payer would otherwise have been liable to income tax.