Division 53—Various exempt payments

Guide to Division 53

53-1 What this Division is about

This Division tells you:

(a) about various payments that are wholly or partly exempt from income tax; and

(b) any special conditions that apply to a payment in order for it to be exempt; and

(c) how to work out how much of a payment is exempt.

Table of sections

Operative provisions

53-10 Exemption of various types of payments

53-15 Supplementary amount of a drought relief payment

53-20 Exemption of similar Australian and United Kingdom veterans’ payments

Operative provisions

53-10 Exemption of various types of payments

This table tells you about the income tax treatment of various types of payments.

 

Exemption of various payments



Item



This type of payment:



... made under:

... is exempt subject to these exceptions and special conditions:

1

Disability services payment

Part III of the Disability Services Act 1986

None

2

Domiciliary nursing care benefit

Part VB of the National Health Act 1953

None

3

Drought relief payment: payment made other than because of a person’s death

The Farm Household Support Act 1992

Only the supplementary amount is exempt
(see section 53-15)

 

4

Drought relief payment: payment made because of a person’s death

Paragraph 49(b) of the Farm Household Support Act 1992

None

 

5

Wounds and disability pension

Not applicable

The payment must be:

(a) of a kind specified in subsection 315(2) of the Income and Corporation Taxes Act 1988 of the United Kingdom; and

(b) similar in nature to payments that are exempt under Division 52 or this Division

53-15 Supplementary amount of a drought relief payment

The supplementary amount of a drought relief payment is the total of:

(a) so much of the payment as is included by way of rental assistance; and

(b) so much of the payment as would have been included by way of remote area allowance if it had been a payment of newstart allowance under the Social Security Act 1991 instead of a drought relief payment; and

(c) so much of the payment as is included because of paragraph 24A(1)(c) (about family payment) of the Farm Household Support Act 1992.

53-20 Exemption of similar Australian and United Kingdom veterans’ payments

The following payments made by the Government of Australia, or the Government of the United Kingdom, are exempt from income tax:

(a) payments similar to payments under the Veterans’ Entitlements Act 1986 that are exempt under Subdivision 52-B;

(b) payments similar to payments that are made because of the Veterans’ Entitlements (Transitional Provisions and Consequential Amendments) Act 1986 and are exempt under Subdivision 52-C.

 

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