Income Tax Assessment Act 1997

s 52-10 — How much of a social security payment is exempt?

(1) The table in this section tells you about the income tax treatment of social security payments, other than payments of: (a) pension bonus and pension bonus bereavement payment; or (aa) child disability assistance; or (ab) carer supplement; or (ac) one ‑ off energy assistance payment under the Social Security Act 1991 ; or (ad) first 2020 economic support payment under the Social Security Act 1991 ; or (ae) second 2020 economic support payment under the Social Security Act 1991 ; or (af) additional economic support payment 2020 under the Social Security Act 1991 ; or (ag) additional economic support payment 2021 under the Social Security Act 1991 ; or (bb) payments under a scheme referred to in subsection (1CB); or (c) one ‑ off payment to carers (carer payment related); or (d) one ‑ off payment to carers (carer allowance related); or (e) 2005 one ‑ off payment to carers (carer payment related); or (f) 2005 one ‑ off payment to carers (carer service pension related); or (g) 2005 one ‑ off payment to carers (carer allowance related); or (h) 2006 one ‑ off payment to carers (carer payment related); or (i) 2006 one ‑ off payment to carers (wife pension related); or (j) 2006 one ‑ off payment to carers (partner service pension related); or (k) 2006 one ‑ off payment to carers (carer service pension related); or (l) 2006 one ‑ off payment to carers (carer allowance related); or (m) 2007 one ‑ off payment to carers (carer payment related); or (n) 2007 one ‑ off payment to carers (wife pension related); or (o) 2007 one ‑ off payment to carers (partner service pension related); or (p) 2007 one ‑ off payment to carers (carer service pension related); or (q) 2007 one ‑ off payment to carers (carer allowance related); or (r) 2008 one ‑ off payment to carers (carer payment related); or (s) 2008 one ‑ off payment to carers (wife pension related); or (t) 2008 one ‑ off payment to carers (partner service pension related); or (u) 2008 one ‑ off payment to carers (carer service pension related); or (v) 2008 one ‑ off payment to carers (carer allowance related); or (w) payments under a scheme referred to in subsection (1E); or (wa) payments under the Social Security Act 1991 referred to in subsection (1EA); or (x) economic security strategy payment under the Social Security Act 1991 ; or (y) training and learning bonus under the Social Security Act 1991 ; or (za) education entry payment supplement under the Social Security Act 1991 ; or (zb) clean energy payments under the Social Security Act 1991 ; or (zc) 2022 cost of living payment under the Social Security Act 1991 . Note: Section 52 ‑ 40 sets out the provisions of the Social Security Act 1991 under which the payments are made. (1A) Payments of pension bonus and pension bonus bereavement payment under Part 2.2A of the Social Security Act 1991 are exempt from income tax. (1AA) Child disability assistance under Part 2.19AA of the Social Security Act 1991 is exempt from income tax. (1AB) Carer supplement under Part 2.19B of the Social Security Act 1991 is exempt from income tax. (1AC) One ‑ off energy assistance payments under Part 2.6 of the Social Security Act 1991 are exempt from income tax. (1AD) One ‑ off energy assistance payments under Part 2.6A of the Social Security Act 1991 are exempt from income tax. (1B) The following payments are exempt from income tax: (a) first 2020 economic support payments under Division 1 of Part 2.6B of the Social Security Act 1991 ; (b) second 2020 economic support payments under Division 2 of Part 2.6B of the Social Security Act 1991 . (1C) The following payments are exempt from income tax: (a) additional economic support payment 2020 under Division 1 of Part 2.6C of the Social Security Act 1991 ; (b) additional economic support payment 2021 under Division 2 of Part 2.6C of the Social Security Act 1991 . (1CA) 2022 cost of living payment under Division 1 of Part 2.6D of the Social Security Act 1991 is exempt from income tax. (1CB) Payments to older Australians under the following schemes are exempt from income tax: (a) a scheme determined under item 1 of Schedule 2 to the Social Security and Veterans’ Entitlements Legislation Amendment (One ‑ off Payments to Increase Assistance for Older Australians and Carers and Other Measures) Act 2006 ; (b) a scheme determined under item 1 of Schedule 2 to the Social Security and Veterans’ Affairs Legislation Amendment (One ‑ off Payments and Other 2007 Budget Measures) Act 2007 ; (c) a scheme determined under item 1 of Schedule 2 to the Social Security and Veterans’ Entitlements Legislation Amendment (One ‑ off Payments and Other Budget Measures) Act 2008. (1D) The following payments under the Social Security Act 1991 are exempt from income tax: (a) one ‑ off payment to carers (carer payment related) (see Division 1 of Part 2.5A of that Act); (b) one ‑ off payment to carers (carer allowance related) (see Division 1 of Part 2.19A of that Act); (c) 2005 one ‑ off payment to carers (carer payment related) (see Division 2 of Part 2.5A of that Act); (d) 2005 one ‑ off payment to carers (carer service pension related) (see Division 3 of Part 2.5A of that Act); (e) 2005 one ‑ off payment to carers (carer allowance related) (see Division 2 of Part 2.19A of that Act); (f) 2006 one ‑ off payment to carers (carer payment related) (see Division 4 of Part 2.5A of that Act); (g) 2006 one ‑ off payment to carers (wife pension related) (see Division 5 of Part 2.5A of that Act); (h) 2006 one ‑ off payment to carers (partner service pension related) (see Division 6 of Part 2.5A of that Act); (i) 2006 one ‑ off payment to carers (carer service pension related) (see Division 7 of Part 2.5A of that Act); or (j) 2006 one ‑ off payment to carers (carer allowance related) (see Division 3 of Part 2.19A of that Act); (k) 2007 one ‑ off payment to carers (carer payment related) (see Division 8 of Part 2.5A of that Act); (l) 2007 one ‑ off payment to carers (wife pension related) (see Division 9 of Part 2.5A of that Act); (m) 2007 one ‑ off payment to carers (partner service pension related) (see Division 10 of Part 2.5A of that Act); (n) 2007 one ‑ off payment to carers (carer service pension related) (see Division 11 of Part 2.5A of that Act); (o) 2007 one ‑ off payment to carers (carer allowance related) (see Division 4 of Part 2.19A of that Act); (p) 2008 one ‑ off payment to carers (carer payment related) (see Division 12 of Part 2.5A of that Act); (q) 2008 one ‑ off payment to carers (wife pension related) (see Division 13 of Part 2.5A of that Act); (r) 2008 one ‑ off payment to carers (partner service pension related) (see Division 14 of Part 2.5A of that Act); (s) 2008 one ‑ off payment to carers (carer service pension related) (see Division 15 of Part 2.5A of that Act); (t) 2008 one ‑ off payment to carers (carer allowance related) (see Division 5 of Part 2.19A of that Act). (1E) Payments to carers under the following schemes are exempt from income tax: (a) a scheme determined under Schedule 3 to the Family Assistance Legislation Amendment (More Help for Families—One ‑ off Payments) Act 2004 ; (b) a scheme determined under Schedule 2 to the Social Security Legislation Amendment (One ‑ off Payments for Carers) Act 2005 ; (c) a scheme determined under Schedule 4 to the Social Security and Veterans’ Entitlements Legislation Amendment (One ‑ off Payments to Increase Assistance for Older Australians and Carers and Other Measures) Act 2006 ; (d) a scheme determined under Schedule 4 to the Social Security and Veterans’ Affairs Legislation Amendment (One ‑ off Payments and Other 2007 Budget Measures) Act 2007 ; (e) a scheme determined under Schedule 4 to the Social Security and Veterans’ Entitlements Legislation Amendment (One ‑ off Payments and Other Budget Measures) Act 2008 . (1F) Economic security strategy payment under the Social Security Act 1991 is exempt from income tax. (1G) Training and learning bonus under the Social Security Act 1991 is exempt from income tax. (1J) Education entry payment supplement under the Social Security Act 1991 is exempt from income tax. (1K) Australian Victim of Terrorism Overseas Payment under Part 2.24AA the Social Security Act 1991 is exempt from income tax. (1L) Clean energy payments under the Social Security Act 1991 are exempt from income tax. (2) Expressions used in this Subdivision that are also used in the Social Security Act 1991 have the same meaning as in that Act. (3) Ordinary payment means a payment other than a payment made because of a person’s death. Income tax treatment of social security payments Item Payment Case 1 Case 2 Case 3 Case 4 1.1 Advance pharmaceutical supplement Exempt Exempt Not applicable Not applicable 2.1 Age pension Supplementary amount is exempt (see section 52 ‑ 15) Supplementary amount, and tax ‑ free amount, are exempt (see sections 52 ‑ 15 and 52 ‑ 20) Exempt Exempt up to the tax ‑ free amount (see section 52 ‑ 25) 2AA.1 Australian Government Disaster Recovery Payment Exempt Exempt Not applicable Not applicable 2A.1 Austudy payment Supplementary amount is exempt (see section 52 ‑ 15) Supplementary amount, and tax ‑ free amount, are exempt (see sections 52 ‑ 15 and 52 ‑ 20) Exempt Exempt up to the tax ‑ free amount (see section 52 ‑ 30) 3A.1 Carer allowance Exempt Exempt Exempt Exempt 4.1 Carer payment : you are pension age or over Supplementary amount is exempt (see section 52 ‑ 15) Supplementary amount, and tax ‑ free amount, are exempt (see sections 52 ‑ 15 and 52 ‑ 20) Exempt, but if it is made under section 236A of the Social Security Act 1991 , exempt only up to the tax ‑ free amount (see section 52 ‑ 35) Exempt up to the tax ‑ free amount if it is made under section 239 of the Social Security Act 1991 (see section 52 ‑ 25) 4.2 Carer payment: the care receiver or any of the care receivers is pension age or over Supplementary amount is exempt (see section 52 ‑ 15) Supplementary amount, and tax ‑ free amount, are exempt (see sections 52 ‑ 15 and 52 ‑ 20) Exempt, but if it is made under section 236A of the Social Security Act 1991 , exempt only up to the tax ‑ free amount (see section 52 ‑ 35) Exempt up to the tax ‑ free amount if it is made under section 239 of the Social Security Act 1991 (see section 52 ‑ 25) 4.3 Carer payment: both you and the care receiver or all of the care receivers are under pension age Exempt Exempt Exempt, but if it is made under section 236A of the Social Security Act 1991 , exempt only up to the tax ‑ free amount (see section 52 ‑ 35) Exempt up to the tax ‑ free amount if it is made under section 239 of the Social Security Act 1991 (see section 52 ‑ 25) 4.4 Carer payment: you are under pension age and any of the care receivers has died Exempt Exempt Exempt, but if it is made under section 236A of the Social Security Act 1991 , exempt only up to the tax ‑ free amount (see section 52 ‑ 35) Exempt up to the tax ‑ free amount if it is made under section 239 of the Social Security Act 1991 (see section 52 ‑ 25) 5.1 Crisis payment Exempt Exempt Not applicable Not applicable 6.1 Disability support pension : you are pension age or over Supplementary amount is exempt (see section 52 ‑ 15) Supplementary amount, and tax ‑ free amount, are exempt (see sections 52 ‑ 15 and 52 ‑ 20) Exempt Exempt up to the tax ‑ free amount (see section 52 ‑ 25) 6.2 Disability support pension : you are under pension age Exempt Exempt Exempt Exempt up to the tax ‑ free amount (see section 52 ‑ 25) 9.1 Double orphan pension Exempt Exempt Exempt Not applicable 13A.1 Fares allowance Exempt Exempt Not applicable Not applicable 14.1 Jobseeker payment Supplementary amount is exempt (see section 52 ‑ 15) Supplementary amount, and tax ‑ free amount, are exempt (see sections 52 ‑ 15 and 52 ‑ 20) Exempt Exempt up to the tax ‑ free amount (see section 52 ‑ 30) 18.1 Mobility allowance Exempt Exempt Not applicable Not applicable 21A.1 Parenting payment (benefit PP (partnered)) Supplementary amount is exempt (see section 52 ‑ 15) Supplementary amount is exempt (see section 52 ‑ 15) Exempt Exempt up to the tax ‑ free amount (see section 52 ‑ 30) 21A.3 Parenting payment (pension PP (single)) Supplementary amount is exempt (see section 52 ‑ 15) Supplementary amount is exempt (see section 52 ‑ 15) Exempt Not applicable 22A.1 Pensioner education supplement Exempt Exempt Not applicable Not applicable 22B.1 Energy supplement under Part 2.25B of the Social Security Act 1991 Exempt Exempt Not applicable Not applicable 22C.1 Quarterly pension supplement Exempt Exempt Not applicable Not applicable 25.1 Special benefit Supplementary amount is exempt (see section 52 ‑ 15) Supplementary amount, and tax ‑ free amount, are exempt (see sections 52 ‑ 15 and 52 ‑ 20) Exempt Exempt up to the tax ‑ free amount (see section 52 ‑ 30) 26.1 Special needs age pension Supplementary amount is exempt (see section 52 ‑ 15) Supplementary amount, and tax ‑ free amount, are exempt (see sections 52 ‑ 15 and 52 ‑ 20) Exempt Exempt up to the tax ‑ free amount (see section 52 ‑ 25) 27.1 Special needs disability support pension : you are pension age or over Supplementary amount is exempt (see section 52 ‑ 15) Supplementary amount, and tax ‑ free amount, are exempt (see sections 52 ‑ 15 and 52 ‑ 20) Exempt Exempt up to the tax ‑ free amount (see section 52 ‑ 25) 27.2 Special needs disability support pension : you are under pension age Exempt Exempt Exempt Exempt up to the tax ‑ free amount (see section 52 ‑ 25) 30.1 Special needs wife pension : you are pension age or over Supplementary amount is exempt (see section 52 ‑ 15) Supplementary amount, and tax ‑ free amount, are exempt (see sections 52 ‑ 15 and 52 ‑ 20) Exempt Exempt up to the tax ‑ free amount (see section 52 ‑ 25) 30.2 Special needs wife pension : your partner is pension age or over Supplementary amount is exempt (see section 52 ‑ 15) Supplementary amount, and tax ‑ free amount, are exempt (see sections 52 ‑ 15 and 52 ‑ 20) Exempt Exempt up to the tax ‑ free amount (see section 52 ‑ 25) 30.3 Special needs wife pension : both you and your partner are under pension age Exempt Exempt Exempt Exempt up to the tax ‑ free amount (see section 52 ‑ 25) 30.4 Special needs wife pension : you are under pension age and your partner has died Exempt Exempt Exempt Exempt up to the tax ‑ free amount (see section 52 ‑ 25) 31.1 Telephone allowance Exempt Exempt Not applicable Not applicable 31A.1 Utilities allowance Exempt Exempt Not applicable Not applicable 35.1 Youth allowance Supplementary amount is exempt (see section 52 ‑ 15) Supplementary amount, and tax ‑ free amount, are exempt (see sections 52 ‑ 15 and 52 ‑ 20) Exempt Exempt up to the tax ‑ free amount (see section 52 ‑ 30) Note: A reference in this table to jobseeker payment or youth allowance includes a reference to farm household allowance under the Farm Household Support Act 2014 (see Part 5 of that Act). Other payments referred to in this table (such as advance pharmaceutical supplement) might also be payable to a person who is receiving farm household allowance.

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5)) | Amended by No 197 of 1997, effective Sch 1 (items 338–343): 20 Mar 1998 (s 2(2)) Sch 1 (items 369–381): 1 July 1998 (s 2(2)) | Amended by No 202 of 1997, effective Sch 1 (items 44, 45): 1 Jan 1998 (s 2(3)) | Amended by No 45 of 1998, effective Sch 12 (items 25–46): 1 July 1998 (s 2(1)) | Amended by No 67 of 1998, effective 30 June 1998 | Amended by No 93 of 1998, effective Sch 7 (items 40–45): 1 Apr 1998 (s 2(9)) | Amended by No 13 of 1999, effective Sch 1 (items 122–125, 128): 1 July 1997 (s 2(3)) Sch 1 (items 129–133): 1 July 1998 (s 2(4)) Sch 1 (items 134–137) and Sch 2 (items 50–55, 63, 64(1), (3)): 1 July 1999 (s 2(2)(a), (b)) | Amended by No 83 of 1999, effective Sch 10 (items 24–54, 68(1), 69): 1 July 2000 (s 2(2)) | Amended by No 152 of 1999, effective Sch 4 (items 17–19): 11 Nov 1999 (s 2(4)) | Amended by No 43 of 2001, effective 25 May 2001 | Amended by No 44 of 2001, effective 25 May 2001 | Amended by No 60 of 2004, effective 26 May 2004 | Amended by No 132 of 2004, effective Schedule 1 (items 1, 2, 17, 18) and Schedule 2 (items 1, 2, 13–15, 24): 1 Dec 2004 | Amended by No 55 of 2005, effective 25 May 2005 | Amended by No 41 of 2006, effective 22 May 2006 | Amended by No 82 of 2006, effective Schedule 4 (items 6–9): 1 Dec 2006 | Amended by No 66 of 2007, effective Schedule 1 (items 17–26) and Schedule 3 (items 13–16): Royal Assent | Amended by No 182 of 2007, effective Schedule 1: 1 Oct 2007 Remainder: Royal Assent | Amended by No 183 of 2007, effective 1 Jan 2008 | Amended by No 19 of 2008, effective Schedule 1 (items 17–25) and Schedule 3 (items 14–32): Royal Assent | Amended by No 64 of 2008, effective 1 July 2008 | Amended by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5) | Amended by No 131 of 2008, effective Schedule 5 (items 3–12): Royal Assent | Amended by No 4 of 2009, effective Schedule 4 and Schedule 5 (items 6–14): Royal Assent | Amended by No 35 of 2009, effective Schedule 1 (items 13–15): Royal Assent | Amended by No 60 of 2009, effective Schedule 4 (items 35–40): 20 Sept 2009 | Amended by No 93 of 2010, effective Schedule 2 (items 54–57): 1 July 2010 | Amended by No 141 of 2011, effective Schedule 10 (items 2–17): 14 May 2012 | Amended by No 12 of 2012, effective s 4, Sch 2 (items 1–23), Sch 5 and Sch 6 (items 3–6, 11–20, 25, 26, 35–67, 74–83, 94–96, 117–142, 157–178, 183, 200–203, 214–217, 235–240, 248): 21 Mar 2012 (s 2(1) items 1, 3, 5, 6, 10, 14, 18, 19, 27, 31) Sch 6 (item 7): 1 July 2007 (s 2(1) item 7) Sch 6 (item 10): 1 July 2010 (s 2(1) item 9) Sch 6 (items 106–116): 22 Mar 2012 (s 2(1) items 16, 17) Sch 6 (item 143): 22 Jan 2013 (s 2(1) item 20) Sch 6 (items 146–148): never commenced (s 2(1) item 23) Sch 6 (items 179, 181): 3 Oct 2008 (s 2(1) items 28, 30) Sch 6 (item 180): 3 June 2010 (s 2(1) item 29) | Amended by No 49 of 2012, effective Schedule 1 (items 46, 47, 52) and Schedule 4 (items 10, 11): 1 July 2012 | Amended by No 106 of 2012, effective Schedule 1 (items 17, 18): 22 Jan 2013 (s 2(1) item 2) | Amended by No 5 of 2013, effective Sch 1 (items 14–20): 5 Mar 2013 (s 2) | Amended by No 13 of 2014, effective Sch 2 (items 33–56): 1 July 2014 (s 2(1) item 3) Sch 2 (items 143, 144): 26 Feb 2014 (s 2(1) item 8) Sch 2 (items 147–149): 1 Oct 2014 (s 2(1) item 9) | Amended by No 35 of 2014, effective Sch 1 (items 9–12): 1 July 2014 (s 2) | Amended by No 96 of 2014, effective Sch 1 (items 14–45, 122–124), Sch 2 (items 1, 14–40, 42, 43) and Sch 3–5: 30 Sept 2014 (s 2(1) item 2) Sch 8 (items 15–22, 26) and Sch 9 (items 21, 22, 24): 31 Dec 2016 (s 2(1) items 7, 9) | Amended by No 91 of 2015, effective Sch 1 (items 49–53, 56): 20 June 2015 (s 2(1) item 2) | Amended by No 128 of 2015, effective Sch 1 (items 29–31): 1 July 2017 (s 2(1) item 3) Sch 1 (items 32, 33): 17 Sept 2015 (s 2(1) item 4) | Amended by No 55 of 2016, effective Sch 3 (items 16–19): 1 July 2017 (s 2(1) item 4) Sch 4 (items 9–13): 1 Jan 2017 (s 2(1) item 5) Sch 22 and Sch 23 (items 2, 3, 22–24): 1 Oct 2016 (s 2(1) item 25) | Amended by No 46 of 2017, effective Sch 1 (items 10–16): 19 June 2017 (s 2(1) item 2) | Amended by No 26 of 2018, effective Sch 1 (items 14–23, 342–354), Sch 2 (items 3–6, 82–93), Sch 3 (items 5–8, 98–111) and Sch 4 (items 1–7, 105–110): 20 Mar 2020 (s 2(1) items 2, 4–6) Sch 5 (items 32–39, 139–148): 20 Sept 2020 (s 2(1) item 8) Sch 6 (items 6–8, 63–72) and Sch 7 (items 2–6, 68–77): 1 Jan 2022 (s 2(1) items 10, 11) | Amended by No 28 of 2019, effective Sch 1 (items 10–13): 6 Apr 2019 (s 2(1) item 1) | Amended by No 22 of 2020, effective Sch 1 (items 1–14), Sch 2 (items 1–6) and Sch 4 (items 12–22): 25 Mar 2020 (s 2(1) items 2, 4) Sch 3 (items 1, 2): 24 Mar 2020 (s 2(1) item 3) | Amended by No 97 of 2020, effective Sch 1 (items 28–36): 14 Nov 2020 (s 2(1) item 2) | Amended by No 107 of 2020, effective Sch 3 (items 2–9): 27 Nov 2020 (s 2(1) item 3) | Amended by No 14 of 2022, effective sch 2, 3, 6, sch 8 (items 1-9): 1 Apr 2022 (s 2(1) items 3, 7, 9)

s 52-15 — Supplementary amounts of payments

You work out the supplementary amount of a social security payment using the following table: Supplementary amount of a social security payment Item For this category of social security payment: the supplementary amount is the total of: 1 Age pension Carer payment Special benefit Special needs age pension Special needs disability support pension Special needs wife pension (a) so much of the payment as is included by way of rent assistance; and (b) so much of the payment as is included by way of remote area allowance; and (c) so much of the payment as is included by way of pharmaceutical allowance; and (d) so much of the payment as is included by way of tax ‑ exempt pension supplement; and (e) so much of the payment as is included by way of energy supplement 2 Disability support pension (a) so much of the payment as is included by way of rent assistance; and (b) so much of the payment as is included by way of remote area allowance; and (c) so much of the payment as is included by way of pharmaceutical allowance; and (d) so much of the payment as is included by way of incentive allowance; and (e) so much of the payment as is included by way of language, literacy and numeracy supplement; and (f) so much of the payment as is included by way of tax ‑ exempt pension supplement; and (g) so much of the payment as is included by way of energy supplement 3 Jobseeker payment Parenting payment (benefit (PP partnered)) Parenting payment (pension (PP single)) Youth allowance (a) so much of the payment as is included by way of rent assistance; and (b) so much of the payment as is included by way of remote area allowance; and (c) so much of the payment as is included by way of pharmaceutical allowance; and (d) so much of the payment as is included by way of language, literacy and numeracy supplement; and (e) so much of the payment as is included by way of tax ‑ exempt pension supplement; and (f) so much of the payment as is included by way of energy supplement 4 Austudy payment (a) so much of the payment as is included by way of rent assistance; and (b) so much of the payment as is included by way of remote area allowance; and (c) so much of the payment as is included by way of pharmaceutical allowance; and (d) so much of the payment as is included by way of tax ‑ exempt pension supplement; and (e) so much of the payment as is included by way of energy supplement Note: A reference in this table to jobseeker payment or youth allowance includes a reference to farm household allowance under the Farm Household Support Act 2014 (see Part 5 of that Act).

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5)) | Amended by No 197 of 1997, effective Sch 1 (items 338–343): 20 Mar 1998 (s 2(2)) Sch 1 (items 369–381): 1 July 1998 (s 2(2)) | Amended by No 45 of 1998, effective Sch 12 (items 25–46): 1 July 1998 (s 2(1)) | Amended by No 13 of 1999, effective Sch 1 (items 122–125, 128): 1 July 1997 (s 2(3)) Sch 1 (items 129–133): 1 July 1998 (s 2(4)) Sch 1 (items 134–137) and Sch 2 (items 50–55, 63, 64(1), (3)): 1 July 1999 (s 2(2)(a), (b)) | Amended by No 83 of 1999, effective Sch 10 (items 24–54, 68(1), 69): 1 July 2000 (s 2(2)) | Amended by No 35 of 2003, effective Schedules 1, 1A, 2, 4, 5 and 6: 20 Sept 2003 Schedule 3: 22 May 2003 Remainder: Royal Assent | Amended by No 38 of 2008, effective Schedule 1, Schedules 3–6, Schedule 7 (items 1–3, 5), Schedule 8 (items 1–11), Schedule 9 (items 2–4), Schedule 10, Schedule 12 and Schedule 13: 24 June 2008 Schedule 8 (items 12–21): 1 July 2012 | Amended by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5) | Amended by No 60 of 2009, effective Schedule 4 (items 35–40): 20 Sept 2009 | Amended by No 141 of 2011, effective Schedule 10 (items 2–17): 14 May 2012 | Amended by No 13 of 2014, effective Sch 2 (items 33–56): 1 July 2014 (s 2(1) item 3) Sch 2 (items 143, 144): 26 Feb 2014 (s 2(1) item 8) Sch 2 (items 147–149): 1 Oct 2014 (s 2(1) item 9) | Amended by No 122 of 2014, effective Sch 1 (items 289–294): 20 Sept 2014 (s 2(1) item 2) | Amended by No 26 of 2018, effective Sch 1 (items 14–23, 342–354), Sch 2 (items 3–6, 82–93), Sch 3 (items 5–8, 98–111) and Sch 4 (items 1–7, 105–110): 20 Mar 2020 (s 2(1) items 2, 4–6) Sch 5 (items 32–39, 139–148): 20 Sept 2020 (s 2(1) item 8) Sch 6 (items 6–8, 63–72) and Sch 7 (items 2–6, 68–77): 1 Jan 2022 (s 2(1) items 10, 11)

s 52-20 — Tax ‑ free amount of an ordinary payment after the death of your partner

(1) You work out under this section the * tax ‑ free amount of an * ordinary payment made under the Social Security Act 1991 after the death of your partner if: (a) you do not qualify for payments under a * bereavement Subdivision; and (b) the ordinary payment became due to you during the bereavement period. Note: For the provisions of the Social Security Act 1991 that tell you if you qualify for payments under a bereavement Subdivision: see subsection (3). (2) This is how to work out the tax ‑ free amount : Method statement Step 1. Work out the * supplementary amount of the payment. Note: The supplementary amount is also exempt and is worked out under section 52 ‑ 15. Step 2. Subtract the * supplementary amount from the amount of the payment. Step 3. Work out what would have been the amount of the payment if your partner had not died. Step 4. Work out what would have been the * supplementary amount of the payment if your partner had not died. Step 5. Subtract the amount at Step 4 from the amount at Step 3. Step 6. Subtract the amount at Step 5 from the amount at Step 2: the result is the tax ‑ free amount . (3) This table sets out: (a) the Subdivisions of the Social Security Act 1991 that are bereavement Subdivisions ; and (b) the provision of that Act that tells you if you qualify for payments under the relevant bereavement Subdivision. Bereavement Subdivisions Item For this bereavement Subdivision: This provision tells you if you qualify for payments under it: 1 Subdivision A of Division 9 of Part 2.2 paragraph 82(1)(e) 2 Subdivision A of Division 10 of Part 2.3 paragraph 146F(1)(e) 3 Subdivision B of Division 9 of Part 2.5 paragraph 237(1)(e) 5A Division 10 of Part 2.11 subsection 567(1) or section 567FA 5B Division 10 of Part 2.11A paragraph 592(1)(f) 6 Division 9 of Part 2.12 subsection 660LA(1) or section 660LH 10 Subdivision AA of Division 9 of Part 2.15 paragraph 768A(1)(f) 11 Subdivision A of Division 10 of Part 2.16 paragraph 822(1)(e)

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5)) | Amended by No 197 of 1997, effective Sch 1 (items 338–343): 20 Mar 1998 (s 2(2)) Sch 1 (items 369–381): 1 July 1998 (s 2(2)) | Amended by No 45 of 1998, effective Sch 12 (items 25–46): 1 July 1998 (s 2(1)) | Amended by No 132 of 1998, effective Sch 5 (items 2–9): 1 July 1999 (s 2(1)) | Amended by No 26 of 2018, effective Sch 1 (items 14–23, 342–354), Sch 2 (items 3–6, 82–93), Sch 3 (items 5–8, 98–111) and Sch 4 (items 1–7, 105–110): 20 Mar 2020 (s 2(1) items 2, 4–6) Sch 5 (items 32–39, 139–148): 20 Sept 2020 (s 2(1) item 8) Sch 6 (items 6–8, 63–72) and Sch 7 (items 2–6, 68–77): 1 Jan 2022 (s 2(1) items 10, 11) | Amended by No 107 of 2020, effective Sch 3 (items 2–9): 27 Nov 2020 (s 2(1) item 3)

s 52-25 — Tax ‑ free amount of certain bereavement lump sum payments

(1) This section applies if a lump sum of any of these categories of social security payments becomes due to you because of your partner’s death. Category of social security payment Age pension Carer payment Disability support pension Special needs age pension Special needs disability support pension Special needs wife pension (2) The total of the following are exempt up to the * tax ‑ free amount: (a) the lump sum payment; (b) all other payments that become due to you under the Social Security Act 1991 during the bereavement lump sum period. (3) This is how to work out the tax ‑ free amount : Method statement Step 1. Work out the payments under the Social Security Act 1991 that would have become due to you during the bereavement lump sum period if: (a) your partner had not died; and (b) your partner had been under * pension age; and (c) immediately before your partner died, you and your partner had been neither an illness separated couple nor a respite care couple. Step 2. Work out how much of those payments would have been exempt in those circumstances. Step 3. Work out the payments under the Social Security Act 1991 or Part III of the Veterans’ Entitlements Act 1986 that would have become due to your partner during the bereavement lump sum period if: (a) your partner had not died; and (b) immediately before your partner died, you and your partner were neither an illness separated couple nor a respite care couple; even if the payments would not have been exempt. Step 4. Total the payments worked out at Steps 2 and 3: the result is the tax ‑ free amount . Example: You are receiving a disability support pension of $300 a fortnight and a pharmaceutical allowance of $5 a fortnight. You are over pension age. Your partner is receiving a jobseeker payment of $250 a fortnight and rent assistance of $75 a fortnight. Your partner dies. Seven instalments are due to you during the bereavement lump sum period. You work out the tax ‑ free amount as follows: Step 1: The instalments that would have become due to you during the bereavement lump sum period are: The total for the period is $2,135. Step 2: The exempt component of each instalment is $5. The total for the 7 instalments is $35. Step 3: The instalments that would have become due to your partner during the same period are: The total for the period is $2,275. Step 4: The tax ‑ free amount is:

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5)) | Amended by No 197 of 1997, effective Sch 1 (items 338–343): 20 Mar 1998 (s 2(2)) Sch 1 (items 369–381): 1 July 1998 (s 2(2)) | Amended by No 132 of 1998, effective Sch 5 (items 2–9): 1 July 1999 (s 2(1)) | Amended by No 13 of 1999, effective Sch 1 (items 122–125, 128): 1 July 1997 (s 2(3)) Sch 1 (items 129–133): 1 July 1998 (s 2(4)) Sch 1 (items 134–137) and Sch 2 (items 50–55, 63, 64(1), (3)): 1 July 1999 (s 2(2)(a), (b)) | Amended by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5) | Amended by No 60 of 2009, effective Schedule 4 (items 35–40): 20 Sept 2009 | Amended by No 26 of 2018, effective Sch 1 (items 14–23, 342–354), Sch 2 (items 3–6, 82–93), Sch 3 (items 5–8, 98–111) and Sch 4 (items 1–7, 105–110): 20 Mar 2020 (s 2(1) items 2, 4–6) Sch 5 (items 32–39, 139–148): 20 Sept 2020 (s 2(1) item 8) Sch 6 (items 6–8, 63–72) and Sch 7 (items 2–6, 68–77): 1 Jan 2022 (s 2(1) items 10, 11) | Amended by No 94 of 2019, effective Sch 1: 29 Oct 2019 (s 2(1) item 2) | Amended by No 107 of 2020, effective Sch 3 (items 2–9): 27 Nov 2020 (s 2(1) item 3)

s 52-30 — Tax ‑ free amount of certain other bereavement lump sum payments

(1) This section applies if a lump sum of any of these categories of social security payments becomes due to you because of your partner’s death. Category of social security payment Austudy payment Jobseeker payment Parenting payment (benefit PP (partnered)) Special benefit Youth allowance Note: A reference in this table to jobseeker payment or youth allowance includes a reference to farm household allowance under the Farm Household Support Act 2014 (see Part 5 of that Act). (2) The total of the following are exempt up to the * tax ‑ free amount: (a) the lump sum payment; (b) all other payments that become due to you under the Social Security Act 1991 during the bereavement lump sum period. (3) This is how to work out the tax ‑ free amount : Method statement Step 1. Work out the payments under the Social Security Act 1991 that would have become due to you during the bereavement lump sum period if: (a) your partner had not died; and (b) your partner had been under * pension age; and (c) immediately before your partner died, you and your partner had been neither an illness separated couple nor a respite care couple. Step 2. Work out how much of those payments would have been exempt in those circumstances. Step 3. Work out the payments under the Social Security Act 1991 that would have become due to your partner during the bereavement lump sum period if your partner had not died, even if the payments would not have been exempt. Step 4. Total the payments worked out at Steps 2 and 3: the result is the tax ‑ free amount .

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5)) | Amended by No 197 of 1997, effective Sch 1 (items 338–343): 20 Mar 1998 (s 2(2)) Sch 1 (items 369–381): 1 July 1998 (s 2(2)) | Amended by No 45 of 1998, effective Sch 12 (items 25–46): 1 July 1998 (s 2(1)) | Amended by No 132 of 1998, effective Sch 5 (items 2–9): 1 July 1999 (s 2(1)) | Amended by No 13 of 2014, effective Sch 2 (items 33–56): 1 July 2014 (s 2(1) item 3) Sch 2 (items 143, 144): 26 Feb 2014 (s 2(1) item 8) Sch 2 (items 147–149): 1 Oct 2014 (s 2(1) item 9) | Amended by No 26 of 2018, effective Sch 1 (items 14–23, 342–354), Sch 2 (items 3–6, 82–93), Sch 3 (items 5–8, 98–111) and Sch 4 (items 1–7, 105–110): 20 Mar 2020 (s 2(1) items 2, 4–6) Sch 5 (items 32–39, 139–148): 20 Sept 2020 (s 2(1) item 8) Sch 6 (items 6–8, 63–72) and Sch 7 (items 2–6, 68–77): 1 Jan 2022 (s 2(1) items 10, 11) | Amended by No 94 of 2019, effective Sch 1: 29 Oct 2019 (s 2(1) item 2) | Amended by No 107 of 2020, effective Sch 3 (items 2–9): 27 Nov 2020 (s 2(1) item 3)

s 52-35 — Tax ‑ free amount of a lump sum payment made because of the death of a person you are caring for

(1) This section applies if a lump sum payment becomes due to you under section 236A of the Social Security Act 1991 because of the death of the care receiver or any of the care receivers. (2) The total of the following are exempt up to the * tax ‑ free amount: (a) the lump sum payment; (b) all other payments that become due to you under the Social Security Act 1991 during the bereavement lump sum period. (3) This is how to work out the tax ‑ free amount : Method statement Step 1. Work out the payments under the Social Security Act 1991 that would have become due to you during the bereavement lump sum period if: (a) the care receiver had not died; and (b) the care receiver had been under * pension age. Step 2. Work out how much of those payments would have been exempt in those circumstances. Step 3. Work out the payments under the Social Security Act 1991 that would have become due to the care receiver during the bereavement lump sum period if the care receiver had not died, even if the payments would not have been exempt. Step 4. Total the payments worked out at Steps 2 and 3: the result is the tax ‑ free amount .

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5)) | Amended by No 132 of 1998, effective Sch 5 (items 2–9): 1 July 1999 (s 2(1)) | Amended by No 13 of 1999, effective Sch 1 (items 122–125, 128): 1 July 1997 (s 2(3)) Sch 1 (items 129–133): 1 July 1998 (s 2(4)) Sch 1 (items 134–137) and Sch 2 (items 50–55, 63, 64(1), (3)): 1 July 1999 (s 2(2)(a), (b)) | Amended by No 94 of 2019, effective Sch 1: 29 Oct 2019 (s 2(1) item 2)

s 52-40 — Provisions of the Social Security Act 1991 under which payments are made

This table lists the provisions of the Social Security Act 1991 under which social security payments are made that are wholly or partly exempt from income tax under this Subdivision. Provisions under which social security payments are made Item Category of social security payment Ordinary payment Payment made because of a person’s death (unless covered by next column) Lump sum payment made because of your partner’s death 1A 2020 economic support payment Part 2.6B Not applicable Not applicable 1AA 2022 cost of living payment Part 2.6D Not applicable Not applicable 1B Additional economic support payment 2020 or additional economic support payment 2021 Part 2.6C Not applicable Not applicable 1 Advance pharmaceutical supplement Part 2.23 Not applicable Not applicable 2 Age pension Part 2.2 Sections 83, 86 and 91 Section 84 2AA Australian Government Disaster Recovery Payment Part 2.24 Not applicable Not applicable 2AB Australian Victim of Terrorism Overseas Payment Part 2.24AA Not applicable Not applicable 2A Austudy payment Part 2.11A Section 592A Section 592B 3A Carer allowance Part 2.19 Sections 992K and 992M Not applicable 4 Carer payment Part 2.5 Sections 236A, 238, 241 and 246 Section 239 4A Clean energy payment Part 2.18A Not applicable Not applicable 5 Crisis payment Part 2.23A Not applicable Not applicable 6 Disability support pension Part 2.3 Sections 146G, 146K and 146Q Section 146H 9 Double orphan pension Part 2.20 Sections 1034 and 1034A Not applicable 13A Fares allowance Part 2.26 Not applicable Not applicable 14 Jobseeker payment Part 2.12 Section 660LB Sections 660LC and 660LH 18 Mobility allowance Part 2.21 Not applicable Not applicable 20 One ‑ off energy assistance payment Part 2.6 or 2.6A Not applicable Not applicable 21A Parenting payment (benefit PP (partnered)) Part 2.10 Sections 513A and 514B Section 514C 21C Parenting payment (pension PP (single)) Part 2.10 Section 513 Not applicable 22A Pensioner education supplement Part 2.24A Not applicable Not applicable 22B Energy supplement Part 2.25B Not applicable Not applicable 22C Quarterly pension supplement Part 2.25C Not applicable Not applicable 25 Special benefit Part 2.15 Section 768B Section 768C 26 Special needs age pension Section 772 Sections 823, 826 and 830 Section 824 27 Special needs disability support pension Section 773 Sections 823, 826 and 830 Section 824 30 Special needs wife pension Section 774 Sections 823, 826 and 830 Section 824 31 Telephone allowance Part 2.25 Not applicable Not applicable 31A Utilities allowance Part 2.25A Not applicable Not applicable 35 Youth allowance Part 2.11 Section 567A Sections 567B and 567FA

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5)) | Amended by No 197 of 1997, effective Sch 1 (items 338–343): 20 Mar 1998 (s 2(2)) Sch 1 (items 369–381): 1 July 1998 (s 2(2)) | Amended by No 202 of 1997, effective Sch 1 (items 44, 45): 1 Jan 1998 (s 2(3)) | Amended by No 45 of 1998, effective Sch 12 (items 25–46): 1 July 1998 (s 2(1)) | Amended by No 93 of 1998, effective Sch 7 (items 40–45): 1 Apr 1998 (s 2(9)) | Amended by No 13 of 1999, effective Sch 1 (items 122–125, 128): 1 July 1997 (s 2(3)) Sch 1 (items 129–133): 1 July 1998 (s 2(4)) Sch 1 (items 134–137) and Sch 2 (items 50–55, 63, 64(1), (3)): 1 July 1999 (s 2(2)(a), (b)) | Amended by No 83 of 1999, effective Sch 10 (items 24–54, 68(1), 69): 1 July 2000 (s 2(2)) | Amended by No 152 of 1999, effective Sch 4 (items 17–19): 11 Nov 1999 (s 2(4)) | Amended by No 35 of 2003, effective Schedules 1, 1A, 2, 4, 5 and 6: 20 Sept 2003 Schedule 3: 22 May 2003 Remainder: Royal Assent | Amended by No 132 of 2004, effective Schedule 1 (items 1, 2, 17, 18) and Schedule 2 (items 1, 2, 13–15, 24): 1 Dec 2004 | Amended by No 82 of 2006, effective Schedule 4 (items 6–9): 1 Dec 2006 | Amended by No 64 of 2008, effective 1 July 2008 | Amended by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5) | Amended by No 60 of 2009, effective Schedule 4 (items 35–40): 20 Sept 2009 | Amended by No 141 of 2011, effective Schedule 10 (items 2–17): 14 May 2012 | Amended by No 106 of 2012, effective Schedule 1 (items 17, 18): 22 Jan 2013 (s 2(1) item 2) | Amended by No 35 of 2014, effective Sch 1 (items 9–12): 1 July 2014 (s 2) | Amended by No 91 of 2015, effective Sch 1 (items 49–53, 56): 20 June 2015 (s 2(1) item 2) | Amended by No 55 of 2016, effective Sch 3 (items 16–19): 1 July 2017 (s 2(1) item 4) Sch 4 (items 9–13): 1 Jan 2017 (s 2(1) item 5) Sch 22 and Sch 23 (items 2, 3, 22–24): 1 Oct 2016 (s 2(1) item 25) | Amended by No 46 of 2017, effective Sch 1 (items 10–16): 19 June 2017 (s 2(1) item 2) | Amended by No 26 of 2018, effective Sch 1 (items 14–23, 342–354), Sch 2 (items 3–6, 82–93), Sch 3 (items 5–8, 98–111) and Sch 4 (items 1–7, 105–110): 20 Mar 2020 (s 2(1) items 2, 4–6) Sch 5 (items 32–39, 139–148): 20 Sept 2020 (s 2(1) item 8) Sch 6 (items 6–8, 63–72) and Sch 7 (items 2–6, 68–77): 1 Jan 2022 (s 2(1) items 10, 11) | Amended by No 28 of 2019, effective Sch 1 (items 10–13): 6 Apr 2019 (s 2(1) item 1) | Amended by No 22 of 2020, effective Sch 1 (items 1–14), Sch 2 (items 1–6) and Sch 4 (items 12–22): 25 Mar 2020 (s 2(1) items 2, 4) Sch 3 (items 1, 2): 24 Mar 2020 (s 2(1) item 3) | Amended by No 97 of 2020, effective Sch 1 (items 28–36): 14 Nov 2020 (s 2(1) item 2) | Amended by No 107 of 2020, effective Sch 3 (items 2–9): 27 Nov 2020 (s 2(1) item 3) | Amended by No 14 of 2022, effective sch 2, 3, 6, sch 8 (items 1-9): 1 Apr 2022 (s 2(1) items 3, 7, 9)

s 52-60 — What this Subdivision is about

This Subdivision tells you: (a) the payments under the Veterans’ Entitlements Act 1986 that are wholly or partly exempt from income tax; and (b) any special circumstances, conditions or exceptions 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 52 ‑ 65 How much of a veterans’ affairs payment is exempt? 52 ‑ 70 Supplementary amounts of payments 52 ‑ 75 Provisions of the Veterans’ Entitlements Act 1986 under which payments are made

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5)) | Amended by No 101 of 2003, effective s. 4, Schedule 1 (items 2–20, 22), Schedule 2 (items 1–12), Schedule 3 (items 2–6) and Schedule 6 (items 16, 22–25, 27, 28, 30): Royal Assent s. 5: 11 Oct 2002 Sch 6 (items 17–19): 1 July 1997 (s 2(1) items 17, 18) Sch 6 (items 20, 21): 21 Dec 2000 (s 2(1) items 19, 20) Sch 6 (item 26): 10 Dec 1999 (s 2(1) item 22) Sch 6 (item 29): 30 June 2000 (s 2(1) item 25)

s 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 (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 (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. (1G) Clean energy payments under the Veterans’ Entitlements Act 1986 are exempt from income tax. (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 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 16A.1 Energy supplement under Part VIIAD of the Veterans’ Entitlements Act 1986 Exempt Not applicable 17.1 Special assistance 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

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5)) | Amended by No 67 of 1998, effective 30 June 1998 | Amended by No 100 of 2004, effective Schedule 2 (items 32–35): 20 Sept 2004 | Amended by No 132 of 2004, effective Schedule 1 (items 1, 2, 17, 18) and Schedule 2 (items 1, 2, 13–15, 24): 1 Dec 2004 | Amended by No 41 of 2006, effective 22 May 2006 | Amended by No 66 of 2007, effective Schedule 1 (items 17–26) and Schedule 3 (items 13–16): Royal Assent | Amended by No 89 of 2007, effective Schedule 5: 1 July 2007 | Amended by No 183 of 2007, effective 1 Jan 2008 | Amended by No 19 of 2008, effective Schedule 1 (items 17–25) and Schedule 3 (items 14–32): Royal Assent | Amended by No 48 of 2008, effective Schedule 3 (items 1, 2, 16(1)): 1 July 2008 | Amended by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5) | Amended by No 131 of 2008, effective Schedule 5 (items 3–12): Royal Assent | Amended by No 80 of 2009, effective Schedule 1 (items 13, 14): 11 Sept 2009 | Amended by No 81 of 2009, effective Schedule 4 (items 54–67, 209(3), 210(3), 211(3), 212(2), 214(4), 215(1)): 20 Sept 2009 | Amended by No 95 of 2011, effective Schedule 1 (items 8–10) and Schedule 3 (items 1, 2, 15(1)): 20 Sept 2011 | Amended by No 141 of 2011, effective Schedule 10 (items 2–17): 14 May 2012 | Amended by No 12 of 2012, effective s 4, Sch 2 (items 1–23), Sch 5 and Sch 6 (items 3–6, 11–20, 25, 26, 35–67, 74–83, 94–96, 117–142, 157–178, 183, 200–203, 214–217, 235–240, 248): 21 Mar 2012 (s 2(1) items 1, 3, 5, 6, 10, 14, 18, 19, 27, 31) Sch 6 (item 7): 1 July 2007 (s 2(1) item 7) Sch 6 (item 10): 1 July 2010 (s 2(1) item 9) Sch 6 (items 106–116): 22 Mar 2012 (s 2(1) items 16, 17) Sch 6 (item 143): 22 Jan 2013 (s 2(1) item 20) Sch 6 (items 146–148): never commenced (s 2(1) item 23) Sch 6 (items 179, 181): 3 Oct 2008 (s 2(1) items 28, 30) Sch 6 (item 180): 3 June 2010 (s 2(1) item 29) | Amended by No 50 of 2012, effective Schedule 3: 27 May 2012 | Amended by No 58 of 2012, effective Schedule 1 (items 2–6): 21 June 2012 ( see s. 2(1)) Schedule 4: Royal Assent Schedule 5: 1 July 2012 | Amended by No 5 of 2013, effective Sch 1 (items 14–20): 5 Mar 2013 (s 2) | Amended by No 96 of 2014, effective Sch 1 (items 14–45, 122–124), Sch 2 (items 1, 14–40, 42, 43) and Sch 3–5: 30 Sept 2014 (s 2(1) item 2) Sch 8 (items 15–22, 26) and Sch 9 (items 21, 22, 24): 31 Dec 2016 (s 2(1) items 7, 9) | Amended by No 91 of 2015, effective Sch 1 (items 49–53, 56): 20 June 2015 (s 2(1) item 2) | Amended by No 46 of 2017, effective Sch 1 (items 10–16): 19 June 2017 (s 2(1) item 2) | Amended by No 128 of 2017, effective Sch 8 (items 11–15, 19, 26, 27): 1 Dec 2017 (s 2(1) item 10) | Amended by No 17 of 2018, effective Sch 2 (items 47, 48): 1 May 2018 (s 2(1) item 3) | Amended by No 28 of 2019, effective Sch 1 (items 10–13): 6 Apr 2019 (s 2(1) item 1) | Amended by No 94 of 2019, effective Sch 1: 29 Oct 2019 (s 2(1) item 2) | Amended by No 22 of 2020, effective Sch 1 (items 1–14), Sch 2 (items 1–6) and Sch 4 (items 12–22): 25 Mar 2020 (s 2(1) items 2, 4) Sch 3 (items 1, 2): 24 Mar 2020 (s 2(1) item 3) | Amended by No 97 of 2020, effective Sch 1 (items 28–36): 14 Nov 2020 (s 2(1) item 2) | Amended by No 142 of 2021, effective Sch 1 (items 15–20): 1 Jan 2022 (s 2(1) item 2) | Amended by No 14 of 2022, effective sch 2, 3, 6, sch 8 (items 1-9): 1 Apr 2022 (s 2(1) items 3, 7, 9) | Amended by No 17 of 2025, effective sch 8 (items 38 ‑ 52): 1 July 2026 (s 2(1) item 6)

s 52-70 — Supplementary amounts of payments

The supplementary amount of a veterans’ affairs payment is the total of: (a) so much of the payment as is included by way of rent assistance; and (b) so much of the payment as is included by way of an additional amount for each of your dependent * children; and (c) so much of the payment as is included by way of remote area allowance; and (d) so much of the payment as is equal to the tax ‑ exempt pension supplement for the payment; and (e) so much of the payment as is included by way of energy supplement.

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5)) | Amended by No 45 of 1998, effective Sch 12 (items 25–46): 1 July 1998 (s 2(1)) | Amended by No 14 of 2009, effective Schedule 1, Schedule 4 (items 11–34, 52) and Schedule 5 (items 7–13): Royal Assent Schedule 5 (items 2, 3, 14): 29 Jan 2009 Schedule 5 (items 5, 6): 1 July 2011 | Amended by No 60 of 2009, effective Schedule 4 (items 35–40): 20 Sept 2009 | Amended by No 81 of 2009, effective Schedule 4 (items 54–67, 209(3), 210(3), 211(3), 212(2), 214(4), 215(1)): 20 Sept 2009 | Amended by No 141 of 2011, effective Schedule 10 (items 2–17): 14 May 2012 | Amended by No 122 of 2014, effective Sch 1 (items 289–294): 20 Sept 2014 (s 2(1) item 2)

s 52-75 — Provisions of the Veterans’ Entitlements Act 1986 under which payments are made

This table lists the provisions of the Veterans’ Entitlements Act 1986 under which veterans’ affairs payments are made that are wholly or partly exempt from income tax under this Subdivision. Provisions under which veterans’ affairs payments are made Item Category of veterans’ affairs payment Ordinary payment Payment made because of a person’s death 1A 2020 economic support payment Part IIIH Not applicable 1AA 2022 cost of living payment Part IIIK Not applicable 1B Additional economic support payment 2020 or additional economic support payment 2021 Part IIIJ Not applicable 1 Age service pension Division 3 of Part III Division 12A of Part IIIB 2 Attendant allowance Section 98 Not applicable 3 Carer service pension Division 6 of Part III Division 12A of Part IIIB 3A Clean energy payment Part IIIE Not applicable 4 Clothing allowance Section 97 Not applicable 6 Income support supplement Part IIIA Division 12A of Part IIIB 7 Invalidity service pension Division 4 of Part III Division 12A of Part IIIB 8 Loss of earnings allowance Section 108 Not applicable 8A One ‑ off energy assistance payment Part IIIF or IIIG Not applicable 9 Partner service pension Division 5 of Part III Division 12A of Part IIIB 10 Pension for defence ‑ caused death or incapacity Part IV Not applicable 11 Pension for war ‑ caused death or incapacity Part II Not applicable 12 Quarterly pension supplement Part IIID Not applicable 13 Recreation transport allowance Section 104 Not applicable 14 Section 98A Bereavement payment Not applicable Section 98A 14A Section 98AA Bereavement payment Not applicable Section 98AA 16A Energy supplement Part VIIAD Not applicable 17 Special assistance Section 106 Not applicable 21 Vehicle Assistance Scheme Section 105 Not applicable 21AA Veteran payment Section 45SB Section 45SB 21A Veterans supplement Part VIIA Not applicable

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5)) | Amended by No 101 of 2003, effective s. 4, Schedule 1 (items 2–20, 22), Schedule 2 (items 1–12), Schedule 3 (items 2–6) and Schedule 6 (items 16, 22–25, 27, 28, 30): Royal Assent s. 5: 11 Oct 2002 Sch 6 (items 17–19): 1 July 1997 (s 2(1) items 17, 18) Sch 6 (items 20, 21): 21 Dec 2000 (s 2(1) items 19, 20) Sch 6 (item 26): 10 Dec 1999 (s 2(1) item 22) Sch 6 (item 29): 30 June 2000 (s 2(1) item 25) | Amended by No 100 of 2004, effective Schedule 2 (items 32–35): 20 Sept 2004 | Amended by No 132 of 2004, effective Schedule 1 (items 1, 2, 17, 18) and Schedule 2 (items 1, 2, 13–15, 24): 1 Dec 2004 | Amended by No 41 of 2006, effective 22 May 2006 | Amended by No 66 of 2007, effective Schedule 1 (items 17–26) and Schedule 3 (items 13–16): Royal Assent | Amended by No 19 of 2008, effective Schedule 1 (items 17–25) and Schedule 3 (items 14–32): Royal Assent | Amended by No 48 of 2008, effective Schedule 3 (items 1, 2, 16(1)): 1 July 2008 | Amended by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5) | Amended by No 131 of 2008, effective Schedule 5 (items 3–12): Royal Assent | Amended by No 81 of 2009, effective Schedule 4 (items 54–67, 209(3), 210(3), 211(3), 212(2), 214(4), 215(1)): 20 Sept 2009 | Amended by No 95 of 2011, effective Schedule 1 (items 8–10) and Schedule 3 (items 1, 2, 15(1)): 20 Sept 2011 | Amended by No 141 of 2011, effective Schedule 10 (items 2–17): 14 May 2012 | Amended by No 12 of 2012, effective s 4, Sch 2 (items 1–23), Sch 5 and Sch 6 (items 3–6, 11–20, 25, 26, 35–67, 74–83, 94–96, 117–142, 157–178, 183, 200–203, 214–217, 235–240, 248): 21 Mar 2012 (s 2(1) items 1, 3, 5, 6, 10, 14, 18, 19, 27, 31) Sch 6 (item 7): 1 July 2007 (s 2(1) item 7) Sch 6 (item 10): 1 July 2010 (s 2(1) item 9) Sch 6 (items 106–116): 22 Mar 2012 (s 2(1) items 16, 17) Sch 6 (item 143): 22 Jan 2013 (s 2(1) item 20) Sch 6 (items 146–148): never commenced (s 2(1) item 23) Sch 6 (items 179, 181): 3 Oct 2008 (s 2(1) items 28, 30) Sch 6 (item 180): 3 June 2010 (s 2(1) item 29) | Amended by No 50 of 2012, effective Schedule 3: 27 May 2012 | Amended by No 58 of 2012, effective Schedule 1 (items 2–6): 21 June 2012 ( see s. 2(1)) Schedule 4: Royal Assent Schedule 5: 1 July 2012 | Amended by No 5 of 2013, effective Sch 1 (items 14–20): 5 Mar 2013 (s 2) | Amended by No 96 of 2014, effective Sch 1 (items 14–45, 122–124), Sch 2 (items 1, 14–40, 42, 43) and Sch 3–5: 30 Sept 2014 (s 2(1) item 2) Sch 8 (items 15–22, 26) and Sch 9 (items 21, 22, 24): 31 Dec 2016 (s 2(1) items 7, 9) | Amended by No 91 of 2015, effective Sch 1 (items 49–53, 56): 20 June 2015 (s 2(1) item 2) | Amended by No 46 of 2017, effective Sch 1 (items 10–16): 19 June 2017 (s 2(1) item 2) | Amended by No 128 of 2017, effective Sch 8 (items 11–15, 19, 26, 27): 1 Dec 2017 (s 2(1) item 10) | Amended by No 17 of 2018, effective Sch 2 (items 47, 48): 1 May 2018 (s 2(1) item 3) | Amended by No 28 of 2019, effective Sch 1 (items 10–13): 6 Apr 2019 (s 2(1) item 1) | Amended by No 22 of 2020, effective Sch 1 (items 1–14), Sch 2 (items 1–6) and Sch 4 (items 12–22): 25 Mar 2020 (s 2(1) items 2, 4) Sch 3 (items 1, 2): 24 Mar 2020 (s 2(1) item 3) | Amended by No 97 of 2020, effective Sch 1 (items 28–36): 14 Nov 2020 (s 2(1) item 2) | Amended by No 142 of 2021, effective Sch 1 (items 15–20): 1 Jan 2022 (s 2(1) item 2) | Amended by No 14 of 2022, effective sch 2, 3, 6, sch 8 (items 1-9): 1 Apr 2022 (s 2(1) items 3, 7, 9) | Amended by No 17 of 2025, effective sch 8 (items 38 ‑ 52): 1 July 2026 (s 2(1) item 6)

s 52-100 — What this Subdivision is about

This Subdivision tells you: (a) the payments made because of the Veterans’ Entitlements (Transitional Provisions and Consequential Amendments) Act 1986 that are wholly or partly exempt from income tax; and (b) any special circumstances, conditions or exceptions 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 52 ‑ 105 Supplementary amount of a payment made under the Repatriation Act 1920 is exempt 52 ‑ 110 Other exempt payments

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5))

s 52-105 — Supplementary amount of a payment made under the Repatriation Act 1920 is exempt

(1) The * supplementary amount of a payment made to you is exempt from income tax if: (a) you are a * parent of a * member of the Forces who has died (but you are neither a widow nor a woman divorced or deserted by her husband) and you are of * pension age or over; or (b) you are the mother of a * member of the Forces who has died and you are also a widow, or divorced or deserted by your husband; and the payment is covered by subsection (2). (2) The payment must be made in circumstances that are a prescribed case under: (a) Table A in Schedule 3 to the Repatriation Act 1920 ; or (b) that Table as applying because of the Repatriation (Far East Strategic Reserve) Act 1956 ; or (c) that Table as applying because of the Repatriation (Special Overseas Service) Act 1962 ; or (d) that Table as applying because of the Interim Forces Benefits Act 1947 ; as in force because of subsection 4(6) of the Veterans’ Entitlements (Transitional Provisions and Consequential Amendments) Act 1986 . (3) The supplementary amount 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 is included by way of an additional amount for each of your dependent * children; and (c) so much of the payment as is included by way of remote area allowance. (4) Member of the Forces has the same meaning as in the Act referred to in the relevant paragraph of subsection (2). (5) 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).

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5)) | Amended by No 144 of 2008, effective Schedule 14 (items 59–96): 10 Dec 2008 | Amended by No 14 of 2009, effective Schedule 1, Schedule 4 (items 11–34, 52) and Schedule 5 (items 7–13): Royal Assent Schedule 5 (items 2, 3, 14): 29 Jan 2009 Schedule 5 (items 5, 6): 1 July 2011 | Amended by No 94 of 2019, effective Sch 1: 29 Oct 2019 (s 2(1) item 2)

s 52-110 — Other exempt payments

Payments (except those covered by section 52 ‑ 105) made because of subsection 4(6) of the Veterans’ Entitlements (Transitional Provisions and Consequential Amendments) Act 1986 are exempt from income tax.

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5))

s 52-112 — What this Subdivision is about

This Subdivision tells you: (a) the payments under the Military Rehabilitation and Compensation Act 2004 that are wholly or partly exempt from income tax; and (b) any special circumstances, conditions or exceptions 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 52 ‑ 114 How much of a payment under the Military Rehabilitation and Compensation Act is exempt?

Amendment history: Inserted by No 52 of 2004, effective Schedule 4 (items 10–13, 14(2), (3), 15): 1 July 2004 ( see s. 2)

s 52-114 — How much of a payment under the Military Rehabilitation and Compensation Act is exempt?

(1) The table in this section tells you about the income tax treatment of payments under the Military Rehabilitation and Compensation Act 2004 . References in the table to provisions are to provisions of that Act. (2) Expressions used in this Subdivision that are also used in the Military Rehabilitation and Compensation Act 2004 have the same meanings as in that Act. (3) Ordinary payment means a payment other than a payment made because of a person’s death. Income tax treatment of Military Rehabilitation and Compensation Act payments Item Category of payment and provision under which it is paid Ordinary payment Payment because of a person’s death 1 Alterations to aids and appliances relating to rehabilitation (section 57) Exempt Not applicable 2 Compensation for journey and accommodation costs (sections 47, 290, 291, 291A and 297 and subsection 328(4)) Exempt Not applicable 3 Compensation for permanent impairment (sections 68, 71, 75 and 80) Exempt Exempt 4 Compensation for financial advice or legal advice (sections 81, 205 and 239) Exempt Not applicable 5 Compensation for incapacity for Permanent Forces member or continuous full ‑ time Reservist (section 85) See section 51 ‑ 32 Exempt 6 Compensation for incapacity for part ‑ time Reservists (section 86) See section 51 ‑ 33 Exempt 7 Compensation by way of Special Rate Disability Pension (section 200) Exempt Not applicable 8 Compensation under the Motor Vehicle Compensation Scheme (section 212) Exempt Not applicable 9 Compensation for household services and attendant care services (sections 214 and 217) Exempt Not applicable 9A Additional Disablement Amount (section 220A) Exempt Not applicable 10 MRCA supplement (sections 221, 245 and 300) Exempt Not applicable 11 Compensation for loss or damage to medical aids (section 226) Exempt Not applicable 11A Victoria Cross allowance (section 230A) Exempt Not applicable 11B Decoration allowance (section 230C) Exempt Not applicable 12 Compensation for a wholly dependent partner for a member’s death (section 233) Not applicable Exempt 13 Continuing permanent impairment and incapacity etc. compensation for a wholly dependent partner (subparagraphs 242(1)(a)(i), (iii) and (iv)) Not applicable Exempt 14 Compensation for eligible young persons who were dependent on deceased member (section 253) Not applicable Exempt 15 Continuing permanent impairment and incapacity etc. compensation for eligible young persons (subparagraphs 255(1)(c)(i), (iii) and (iv)) Not applicable Exempt 16 Education and training, or a payment, under the education scheme for certain eligible young persons (section 258) Exempt if: (a) provided for or made to a person under 16; or (b) a clean energy payment Exempt 17 Compensation for other persons who were dependent on deceased member (section 262) Not applicable Exempt 18 Compensation for cost of a funeral (sections 266, 268AA, 268AB and 268AC) Not applicable Exempt 18A Compensation relating to prisoners of war (sections 268AJ and 268AM) Exempt Not applicable 19 Compensation for treatment costs (sections 288A, 288B and 288C) Exempt Not applicable 21 Special assistance (section 424) Exempt Exempt 22 Clean energy payment (sections 83A, 209A, 220D and 238A) Exempt Not applicable Note: The supplementary amount of a payment covered by item 16 of the table made to a person aged 16 or over is also exempt from income tax (see section 52 ‑ 140).

Amendment history: Inserted by No 52 of 2004, effective Schedule 4 (items 10–13, 14(2), (3), 15): 1 July 2004 ( see s. 2) | Amended by No 81 of 2009, effective Schedule 4 (items 54–67, 209(3), 210(3), 211(3), 212(2), 214(4), 215(1)): 20 Sept 2009 | Amended by No 141 of 2011, effective Schedule 10 (items 2–17): 14 May 2012 | Amended by No 58 of 2012, effective Schedule 1 (items 2–6): 21 June 2012 ( see s. 2(1)) Schedule 4: Royal Assent Schedule 5: 1 July 2012 | Amended by No 5 of 2013, effective Sch 1 (items 14–20): 5 Mar 2013 (s 2) | Amended by No 99 of 2013, effective Sch 5 (item 48): 1 July 2013 (s 2(1) item 2) | Amended by No 96 of 2014, effective Sch 1 (items 14–45, 122–124), Sch 2 (items 1, 14–40, 42, 43) and Sch 3–5: 30 Sept 2014 (s 2(1) item 2) Sch 8 (items 15–22, 26) and Sch 9 (items 21, 22, 24): 31 Dec 2016 (s 2(1) items 7, 9) | Amended by No 128 of 2017, effective Sch 8 (items 11–15, 19, 26, 27): 1 Dec 2017 (s 2(1) item 10) | Amended by No 122 of 2019, effective Sch 1 (items 25, 28–32): 12 Dec 2019 (s 2(1) item 1) | Amended by No 17 of 2025, effective sch 8 (items 38 ‑ 52): 1 July 2026 (s 2(1) item 6)

s 52-117 — Payments of travelling expenses and pharmaceutical supplement are exempt

(1) A payment made to you under Part 3 (travelling expenses) of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006 is exempt from income tax. (2) A payment of pharmaceutical supplement made to you under Part 3A of the Australian Participants in British Nuclear Tests and British Commonwealth Occupation Force (Treatment) Act 2006 is exempt from income tax.

Amendment history: Inserted by No 136 of 2006, effective Schedules 1 and 2: 1 Dec 2006 ( see s. 2(1)) Remainder: Royal Assent | Amended by No 59 of 2017, effective Sch 1 (items 26–33): 1 July 2017 (s 2(1) item 4)

s 52-120 — Payments of travelling expenses and pharmaceutical supplement are exempt

(1) A payment made to you under Part 3 (travelling expenses) of the Treatment Benefits (Special Access) Act 2019 is exempt from income tax. (2) A payment of pharmaceutical supplement made to you under Part 4 of the Treatment Benefits (Special Access) Act 2019 is exempt from income tax.

Amendment history: Inserted by No 196 of 1997, effective Sch 1 (items 19, 20): 9 Dec 1997 (s 2(5)) | Repealed by No 83 of 1999, effective Sch 10 (items 24–54, 68(1), 69): 1 July 2000 (s 2(2)) | Inserted by No 42 of 2019, effective Sch 1 (items 1, 2) and Sch 2 (items 9–11): 6 Apr 2019 (s 2(1) item 2)

s 52-130 — What this Subdivision is about

This Subdivision tells you: (a) the payments under the ABSTUDY scheme that are wholly or partly exempt from income tax; and (b) any special circumstances, conditions or exceptions 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 52 ‑ 131 Payments under ABSTUDY scheme 52 ‑ 132 Supplementary amount of payment 52 ‑ 133 Tax ‑ free amount of ordinary payment on death of partner if no bereavement payment payable 52 ‑ 134 Tax ‑ free amount if you receive a bereavement lump sum payment

Amendment history: Inserted by No 60 of 1999, effective 9 July 1999 ( see s. 2) | Repealed by No 66 of 2003, effective s 4, Sch 2 (items 1–5, 17), Sch 3 (items 49–70, 71–128, 129–131, 140, 141), Sch 4, Sch 6 (items 1, 3) and Sch 7 (items 6–9): 30 June 2003 (s 2(1) items 1, 3, 6–8, 8B–12, 12B, 14, 15, 17, 18) Sch 3 (items 70A, 128A): 2 Apr 2003 (s 2(1) items 8A, 12A) | Inserted by No 184 of 2007, effective Schedule 3: 1 Jan 2008

s 52-131 — Payments under ABSTUDY scheme

(1) This section tells you about the income tax treatment of a payment under the ABSTUDY scheme made in respect of a period commencing at a time when you were at least 16 years old. Note: The whole of a payment made under the ABSTUDY scheme in respect of a period commencing at a time when you are under 16 years old may be exempt under section 51 ‑ 10. (2) The following payments made to you under the ABSTUDY scheme are exempt from income tax: (a) a crisis payment; (b) a clean energy payment; (c) a first 2020 economic support payment; (d) a second 2020 economic support payment; (e) a 2022 cost of living payment. (3) If: (a) an * ordinary payment becomes due to you; and (b) the payment is not covered by subsection (4) or (6); the * supplementary amount of the ordinary payment is exempt from income tax. Note: To work out the supplementary amount of the ordinary payment, see section 52 ‑ 132. (4) If: (a) your partner dies; and (b) you do not qualify for a payment under the ABSTUDY scheme in respect of that death; and (c) an * ordinary payment becomes due to you during the bereavement period; the * supplementary amount and the * tax ‑ free amount of the ordinary payment are exempt from income tax. Note 1: To work out the supplementary amount of the ordinary payment, see section 52 ‑ 132. Note 2: To work out the tax ‑ free amount of the ordinary payment, see section 52 ‑ 133. (5) If a payment becomes due to you under the ABSTUDY scheme because of a person’s death (except a lump sum payment because of your partner’s death), the payment is exempt from income tax. (6) If: (a) your partner dies; and (b) a lump sum payment under the ABSTUDY scheme becomes due to you because of your partner’s death; the total of the following are exempt from income tax up to the * tax free amount: (c) the lump sum payment; and (d) all other payments that become due to you under the ABSTUDY scheme during the bereavement lump sum period. Note: To work out the tax ‑ free amount, see section 52 ‑ 134. (7) ABSTUDY scheme means the scheme known as ABSTUDY. (8) Ordinary payment means a payment under the ABSTUDY scheme, other than: (a) a crisis payment; or (aa) a clean energy payment; or (ab) a first 2020 economic support payment; or (ac) a second 2020 economic support payment; or (ad) a 2022 cost of living payment; or (b) a payment made because of a person’s death. (9) The following expressions used in this Subdivision have the same meaning as in the ABSTUDY Policy Manual: (a) bereavement lump sum period; (b) bereavement period; (c) illness separated couple; (d) lump sum payment; (e) partner; (f) pension age; (g) respite care couple. Note: In 2009, the ABSTUDY Policy Manual was accessible through the website of the Department administered by the Student Assistance Minister.

Amendment history: Inserted by No 184 of 2007, effective Schedule 3: 1 Jan 2008 | Amended by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010 | Amended by No 58 of 2012, effective Schedule 1 (items 2–6): 21 June 2012 ( see s. 2(1)) Schedule 4: Royal Assent Schedule 5: 1 July 2012 | Amended by No 110 of 2014, effective Sch 1 and Sch 2 (items 2–5, 13–23): 17 Oct 2014 (s 2(1) item 2) Sch 3, Sch 4 (items 1, 3) and Sch 5 (items 16–67, 74–76, 84–91, 98–121): 16 Oct 2014 (s 2(1) items 3–5, 7) | Amended by No 15 of 2017, effective Sch 1 (item 1): 1 Mar 2017 (s 2(1) item 2) Sch 2 and Sch 4 (items 26–69, 71–83): 1 Apr 2017 (s 2(1) items 3, 8, 10) Sch 4 (item 70): 19 Mar 2015 (s 2(1) item 9) | Amended by No 22 of 2020, effective Sch 1 (items 1–14), Sch 2 (items 1–6) and Sch 4 (items 12–22): 25 Mar 2020 (s 2(1) items 2, 4) Sch 3 (items 1, 2): 24 Mar 2020 (s 2(1) item 3) | Amended by No 14 of 2022, effective sch 2, 3, 6, sch 8 (items 1-9): 1 Apr 2022 (s 2(1) items 3, 7, 9)

s 52-132 — Supplementary amount of payment

The * supplementary amount of a payment is the total of: (a) so much of the payment as is included to assist you with, or to reimburse you for, the costs of any one or more of the following: (i) rent; (ii) living in a remote area; (iii) commencing employment; (iv) travel to, or participation in, courses, interviews, education or training; (v) a child or children wholly or substantially dependent on you; (vi) telephone bills; (vii) living away from your usual residence; (viii) maintaining your usual residence while living away from that residence; (ix) accommodation, books or equipment; (xi) discharging a compulsory repayment amount (within the meaning of the Higher Education Support Act 2003 ); (xia) discharging a compulsory VETSL repayment amount (within the meaning of the VET Student Loans Act 2016 ); (xii) transport in travelling to undertake education or training, or to visit your usual residence when undertaking education or training away from that residence; (xiii) if you are disabled—acquiring any special equipment, services or transport as a result of the disability; (xiv) anything that would otherwise prevent you from beginning, continuing or completing any education or training; and (b) so much of the payment as is included by way of pharmaceutical allowance; and (c) so much of the payment as is included by way of energy supplement.

Amendment history: Inserted by No 184 of 2007, effective Schedule 3: 1 Jan 2008 | Amended by No 56 of 2010, effective s. 4, Schedule 3 (items 2–7, 10(1)–(4)), Schedule 4, Schedule 5 (items 1–3, 3A, 3B, 4–53, 55–72, 78–110, 112–129, 131–136, 141–146, 146A, 147, 148, 148A, 149, 150, 150A–150F, 151–188, 193–220) and Schedule 6 (items 1–11, 19–26, 56, 57, 115, 127–155): 3 June 2010 Schedule 2 (items 2, 4): 4 June 2010 Sch 5 (item 111): 26 Mar 2009 (s 2(1) item 11B) | Amended by No 58 of 2012, effective Schedule 1 (items 2–6): 21 June 2012 ( see s. 2(1)) Schedule 4: Royal Assent Schedule 5: 1 July 2012 | Amended by No 122 of 2014, effective Sch 1 (items 289–294): 20 Sept 2014 (s 2(1) item 2) | Amended by No 116 of 2018, effective Sch 1 (items 27–32): 1 July 2019 (s 2(1) item 2B)

s 52-133 — Tax ‑ free amount of ordinary payment on death of partner if no bereavement payment payable

This is how to work out the tax ‑ free amount of an * ordinary payment for the purposes of subsection 52 ‑ 131(4): Method statement Step 1. Work out the * supplementary amount of the payment. Note: The supplementary amount is also exempt and is worked out under section 52 ‑ 132. Step 2. Subtract the * supplementary amount from the amount of the payment. Step 3. Work out what would have been the amount of the payment if your partner had not died. Step 4. Work out what would have been the * supplementary amount of the payment if your partner had not died. Step 5. Subtract the amount at Step 4 from the amount at Step 3. Step 6. Subtract the amount at Step 5 from the amount at Step 2: the result is the tax ‑ free amount .

Amendment history: Inserted by No 184 of 2007, effective Schedule 3: 1 Jan 2008

s 52-134 — Tax ‑ free amount if you receive a bereavement lump sum payment

This is how to work out the tax ‑ free amount for the purposes of subsection 52 ‑ 131(6): Method statement Step 1. Work out the payments under the ABSTUDY scheme that would have become due to you during the bereavement lump sum period if: (a) your partner had not died; and (b) your partner had been under pension age; and (c) immediately before your partner died, you and your partner had been neither an illness separated couple nor a respite care couple. Step 2. Work out how much of those payments would have been exempt in those circumstances. Step 3. Work out the payments under the ABSTUDY scheme or the Social Security Act 1991 that would have become due to your partner during the bereavement lump sum period if your partner had not died, even if the payments would not have been exempt. Step 4. Total the payments worked out at Steps 2 and 3: the result is the tax ‑ free amount .

Amendment history: Inserted by No 184 of 2007, effective Schedule 3: 1 Jan 2008

s 52-140 — Supplementary amount of a Commonwealth education or training payment is exempt

(1) This section tells you about the income tax treatment of a * Commonwealth education or training payment (other than a payment to or on behalf of a student under the scheme known as ABSTUDY). Note: The income tax treatment of payments under the scheme known as ABSTUDY is dealt with in Subdivision 52 ‑ E. (2) The * supplementary amount of the payment is exempt from income tax. (3) The supplementary amount is the total of: (a) so much of the payment as is included to assist you with, or to reimburse you for, the costs of any one or more of the following: (i) rent; (ii) living in a remote area; (iii) commencing employment; (iv) travel to, or participation in, courses, interviews, education or training; (v) a child or children wholly or substantially dependent on you; (vi) telephone bills; (vii) living away from your usual residence; (viii) maintaining your usual residence while living away from that residence; (ix) accommodation, books or equipment; (xa) discharging a compulsory repayment amount (within the meaning of the Higher Education Support Act 2003 ); (xb) discharging a compulsory VETSL repayment amount (within the meaning of the VET Student Loans Act 2016 ); (xi) transport in travelling to undertake education or training, or to visit your usual residence when undertaking education or training away from that residence; (xii) if you are disabled—acquiring any special equipment, services or transport as a result of the disability; (xiii) anything that would otherwise prevent you from beginning, continuing or completing any education or training; and (b) so much of the payment as is included by way of pharmaceutical allowance; and (c) so much of the payment as is included by way of energy supplement.

Amendment history: Inserted by No 54 of 1999, effective 5 July 1999 (s 2(1), (2)) | Amended by No 150 of 2003, effective Sch 2 (items 136–143): 1 Jan 2004 (s 2(1) item 16) | Amended by No 184 of 2007, effective Schedule 3: 1 Jan 2008 | Amended by No 56 of 2010, effective s. 4, Schedule 3 (items 2–7, 10(1)–(4)), Schedule 4, Schedule 5 (items 1–3, 3A, 3B, 4–53, 55–72, 78–110, 112–129, 131–136, 141–146, 146A, 147, 148, 148A, 149, 150, 150A–150F, 151–188, 193–220) and Schedule 6 (items 1–11, 19–26, 56, 57, 115, 127–155): 3 June 2010 Schedule 2 (items 2, 4): 4 June 2010 Sch 5 (item 111): 26 Mar 2009 (s 2(1) item 11B) | Amended by No 58 of 2012, effective Schedule 1 (items 2–6): 21 June 2012 ( see s. 2(1)) Schedule 4: Royal Assent Schedule 5: 1 July 2012 | Amended by No 122 of 2014, effective Sch 1 (items 289–294): 20 Sept 2014 (s 2(1) item 2) | Amended by No 116 of 2018, effective Sch 1 (items 27–32): 1 July 2019 (s 2(1) item 2B)

s 52-145 — Meaning of Commonwealth education or training payment

(1) A Commonwealth education or training payment is a payment by the Commonwealth, or in connection with a payment by the Commonwealth, of an allowance or reimbursement: (a) to or on behalf of a participant in a * Commonwealth labour market program; or (b) to or on behalf of a student under: (i) the scheme known as ABSTUDY; or (ii) the scheme known as the Assistance for Isolated Children Scheme; or (iiia) the scheme under section 258 of the Military Rehabilitation and Compensation Act 2004 to provide education and training; or (iv) the scheme known as youth allowance; or (v) the scheme known as austudy payment; in respect of a period commencing at a time when the student was at least 16 years old. (2) A Commonwealth labour market program is a program administered by the Commonwealth under which: (a) unemployed persons are given training in skills to improve their employment prospects; or (b) unemployed persons are assisted in obtaining employment or to become self ‑ employed; or (c) employed persons are given training in skills and other assistance to aid them in continuing to be employed by their current employer or in obtaining other employment.

Amendment history: Inserted by No 54 of 1999, effective 5 July 1999 (s 2(1), (2)) | Amended by No 54 of 1999, effective 5 July 1999 (s 2(1), (2)) | Amended by No 52 of 2004, effective Schedule 4 (items 10–13, 14(2), (3), 15): 1 July 2004 ( see s. 2) | Amended by No 17 of 2025, effective sch 8 (items 38 ‑ 52): 1 July 2026 (s 2(1) item 6)

s 52-150 — Family assistance payments are exempt

A payment of child care subsidy, additional child care subsidy, family tax benefit, stillborn baby payment, economic security strategy payment to families, back to school bonus, single income family bonus, clean energy advance, single income family supplement, ETR payment, first 2020 economic support payment, second 2020 economic support payment, additional economic support payment 2020 or additional economic support payment 2021 made to you under the A New Tax System (Family Assistance) (Administration) Act 1999 is exempt from income tax.

Amendment history: Inserted by No 83 of 1999, effective Sch 10 (items 24–54, 68(1), 69): 1 July 2000 (s 2(2)) | Amended by No 59 of 2004, effective Schedule 2 (items 36–42): 1 July 2004 | Amended by No 60 of 2004, effective 26 May 2004 | Amended by No 82 of 2007, effective Schedule 6 (items 39, 40): 1 July 2007 | Amended by No 113 of 2007, effective Schedule 1 (items 20–22): 1 July 2007 | Amended by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5) | Amended by No 131 of 2008, effective Schedule 5 (items 3–12): Royal Assent | Amended by No 4 of 2009, effective Schedule 4 and Schedule 5 (items 6–14): Royal Assent | Amended by No 50 of 2009, effective Schedule 1 (items 15, 40, 41): Royal Assent | Amended by No 141 of 2011, effective Schedule 10 (items 2–17): 14 May 2012 | Amended by No 12 of 2012, effective s 4, Sch 2 (items 1–23), Sch 5 and Sch 6 (items 3–6, 11–20, 25, 26, 35–67, 74–83, 94–96, 117–142, 157–178, 183, 200–203, 214–217, 235–240, 248): 21 Mar 2012 (s 2(1) items 1, 3, 5, 6, 10, 14, 18, 19, 27, 31) Sch 6 (item 7): 1 July 2007 (s 2(1) item 7) Sch 6 (item 10): 1 July 2010 (s 2(1) item 9) Sch 6 (items 106–116): 22 Mar 2012 (s 2(1) items 16, 17) Sch 6 (item 143): 22 Jan 2013 (s 2(1) item 20) Sch 6 (items 146–148): never commenced (s 2(1) item 23) Sch 6 (items 179, 181): 3 Oct 2008 (s 2(1) items 28, 30) Sch 6 (item 180): 3 June 2010 (s 2(1) item 29) | Amended by No 49 of 2012, effective Schedule 1 (items 46, 47, 52) and Schedule 4 (items 10, 11): 1 July 2012 | Amended by No 50 of 2012, effective Schedule 3: 27 May 2012 | Amended by No 70 of 2013, effective Sch 2A (items 45–47, 67(9)): 1 Mar 2014 (s 2(1) item 9A) | Amended by No 96 of 2014, effective Sch 1 (items 14–45, 122–124), Sch 2 (items 1, 14–40, 42, 43) and Sch 3–5: 30 Sept 2014 (s 2(1) item 2) Sch 8 (items 15–22, 26) and Sch 9 (items 21, 22, 24): 31 Dec 2016 (s 2(1) items 7, 9) | Amended by No 22 of 2017, effective Sch 2 (items 6–8): 2 July 2018 (s 2(1) item 2) Sch 4: 5 Apr 2017 (s 2(1) item 5) | Amended by No 22 of 2020, effective Sch 1 (items 1–14), Sch 2 (items 1–6) and Sch 4 (items 12–22): 25 Mar 2020 (s 2(1) items 2, 4) Sch 3 (items 1, 2): 24 Mar 2020 (s 2(1) item 3) | Amended by No 97 of 2020, effective Sch 1 (items 28–36): 14 Nov 2020 (s 2(1) item 2)

s 52-160 — Economic security strategy payments are exempt

Payments under the scheme determined under Schedule 4 to the Social Security and Other Legislation Amendment (Economic Security Strategy) Act 2008 are exempt from income tax.

Amendment history: Inserted by No 131 of 2008, effective Schedule 5 (items 3–12): Royal Assent

s 52-162 — ETR payments are exempt

Payments under the scheme determined under Part 2 of Schedule 1 to the Family Assistance and Other Legislation Amendment (Schoolkids Bonus Budget Measures) Act 2012 are exempt from income tax.

Amendment history: Inserted by No 50 of 2012, effective Schedule 3: 27 May 2012

s 52-165 — Household stimulus payments are exempt

Payments under the scheme determined under Schedule 4 to the Household Stimulus Package Act (No. 2) 2009 are exempt from income tax.

Amendment history: Inserted by No 4 of 2009, effective Schedule 4 and Schedule 5 (items 6–14): Royal Assent | Amended by No 25 of 2009, effective Sch 1 (items 8–10): 18 Feb 2009 (s 2(1) item 3)

s 52-170 — Outer Regional and Remote payments under the Helping Children with Autism package are exempt

Payments known as Outer Regional and Remote payments under the Helping Children with Autism package are exempt from income tax.

Amendment history: Inserted by No 118 of 2009, effective Sch 3 and Sch 6 (item 5): 4 Dec 2009 (s 2(1) items 7, 11) Sch 4: 1 July 2010 (s 2(1) item 8) Sch 6 (item 6): never commenced (s 2(1) item 12) Sch 6 (item 7): 30 June 2016 (s 2(1) item 12)

s 52-172 — Outer Regional and Remote payments under the Better Start for Children with Disability initiative are exempt

Payments known as Outer Regional and Remote payments under the Better Start for Children with Disability initiative are exempt from income tax.

Amendment history: Inserted by No 129 of 2011, effective Sch 1 and Sch 3 (items 3–8): 3 Nov 2011 (s 2(1) items 2, 6) Sch 3 (items 1, 2): 22 Feb 2011 (s 2(1) item 5) Sch 3 (items 9, 10): 1 July 2013 (s 2(1) item 7) Sch 3 (items 11, 12): 1 July 2014 (s 2(1) item 8) Sch 3 (items 13, 14): 1 July 2015 (s 2(1) item 9)

s 52-175 — Continence aids payments are exempt

Payments under the scheme known as the Continence Aids Payment Scheme are exempt from income tax.

Amendment history: Inserted by No 118 of 2009, effective Sch 3 and Sch 6 (item 5): 4 Dec 2009 (s 2(1) items 7, 11) Sch 4: 1 July 2010 (s 2(1) item 8) Sch 6 (item 6): never commenced (s 2(1) item 12) Sch 6 (item 7): 30 June 2016 (s 2(1) item 12)

s 52-180 — National Disability Insurance Scheme amounts are exempt

An * NDIS amount * derived by a participant (within the meaning of the National Disability Insurance Scheme Act 2013 ) is exempt from income tax.

Amendment history: Inserted by No 44 of 2013, effective Sch 3: 28 May 2013 (s 2(1) item 14)

s 52-185 — Acute support packages are exempt

Payments under an instrument made under any of the following are exempt from income tax: (a) section 268B of the Military Rehabilitation and Compensation Act 2004 ; (b) section 41B of the Safety, Rehabilitation and Compensation (Defence ‑ related Claims) Act 1988 ; (c) section 115S of the Veterans’ Entitlements Act 1986 .

Amendment history: Inserted by No 40 of 2022, effective sch 1 (items 25-27): 14 Oct 2022 (s 2(1) item 1)

s 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 ‑ 20 Exemption of similar Australian and United Kingdom veterans’ payments 53 ‑ 25 Coronavirus economic response payment 53 ‑ 30 Territories Stolen Generations Redress Scheme payments are exempt

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5))

s 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 Carer adjustment payment The power of the Commonwealth to make ex ‑ gratia payments None 2 Disability services payment Part III of the former Disability Services Act 1986 None 4C Tobacco industry exit grant The program known as the Tobacco Growers Adjustment Assistance Programme 2006 As a condition of receiving the grant, you entered into an undertaking not to become the owner or operator of any agricultural * enterprise within 5 years after receiving the grant 5 Wounds and disability pension Not applicable The payment must be: (a) of a kind specified in section 641 of the Income Tax (Earnings and Pensions) Act 2003 of the United Kingdom; and (b) similar in nature to payments that are exempt under Division 52 or this Division

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5)) | Amended by No 179 of 1997, effective Sch 2 (items 12–26) and Sch 3 (item 4): 25 Nov 1997 (s 2) | Amended by No 102 of 1998, effective 30 July 1998 | Amended by No 13 of 1999, effective Sch 1 (items 122–125, 128): 1 July 1997 (s 2(3)) Sch 1 (items 129–133): 1 July 1998 (s 2(4)) Sch 1 (items 134–137) and Sch 2 (items 50–55, 63, 64(1), (3)): 1 July 1999 (s 2(2)(a), (b)) | Amended by No 144 of 2000, effective Sch 2 (items 7–19) and Sch 3 (items 7(3), 8): 18 Dec 2000 (s 2(2) and gaz 2000, No S634) | Amended by No 20 of 2004, effective Schedule 6: 1 July 2000 Remainder: Royal Assent | Amended by No 38 of 2008, effective Schedule 1, Schedules 3–6, Schedule 7 (items 1–3, 5), Schedule 8 (items 1–11), Schedule 9 (items 2–4), Schedule 10, Schedule 12 and Schedule 13: 24 June 2008 Schedule 8 (items 12–21): 1 July 2012 | Amended by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5) | Amended by No 141 of 2011, effective Schedule 10 (items 2–17): 14 May 2012 | Amended by No 12 of 2012, effective s 4, Sch 2 (items 1–23), Sch 5 and Sch 6 (items 3–6, 11–20, 25, 26, 35–67, 74–83, 94–96, 117–142, 157–178, 183, 200–203, 214–217, 235–240, 248): 21 Mar 2012 (s 2(1) items 1, 3, 5, 6, 10, 14, 18, 19, 27, 31) Sch 6 (item 7): 1 July 2007 (s 2(1) item 7) Sch 6 (item 10): 1 July 2010 (s 2(1) item 9) Sch 6 (items 106–116): 22 Mar 2012 (s 2(1) items 16, 17) Sch 6 (item 143): 22 Jan 2013 (s 2(1) item 20) Sch 6 (items 146–148): never commenced (s 2(1) item 23) Sch 6 (items 179, 181): 3 Oct 2008 (s 2(1) items 28, 30) Sch 6 (item 180): 3 June 2010 (s 2(1) item 29) | Amended by No 58 of 2012, effective Schedule 1 (items 2–6): 21 June 2012 ( see s. 2(1)) Schedule 4: Royal Assent Schedule 5: 1 July 2012 | Amended by No 13 of 2014, effective Sch 2 (items 33–56): 1 July 2014 (s 2(1) item 3) Sch 2 (items 143, 144): 26 Feb 2014 (s 2(1) item 8) Sch 2 (items 147–149): 1 Oct 2014 (s 2(1) item 9) | Amended by No 109 of 2014, effective Sch 10 (items 13–15, 21–48): 17 Oct 2014 (s 2(1) item 8) | Amended by No 103 of 2023, effective sch 2 (item 10): 1 Jan 2024 (s 2(1) item 2)

s 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.

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5))

s 53-25 — Coronavirus economic response payment

A payment is exempt from income tax if: (a) the payment is paid in accordance with rules made under the Coronavirus Economic Response Package (Payments and Benefits) Act 2020 ; and (b) those rules state that the payment is exempt from income tax.

Amendment history: Inserted by No 102 of 1998, effective 30 July 1998 | Amended by No 144 of 2000, effective Sch 2 (items 7–19) and Sch 3 (items 7(3), 8): 18 Dec 2000 (s 2(2) and gaz 2000, No S634) | Repealed by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5) | Inserted by No 38 of 2020, effective Sch 2 (items 3–6): 9 Apr 2020 (s 2(1) item 4)

s 53-30 — Territories Stolen Generations Redress Scheme payments are exempt

Payments under the scheme known as the Territories Stolen Generations Redress Scheme are exempt from income tax.

Amendment history: Inserted by No 141 of 2021, effective Sch 1 (items 1–3): 1 Jan 2022 (s 2(1) item 2)

s 54-1 — What this Division is about

Certain annuities and lump sums provided under structured settlements and structured orders are exempt from income tax. This Division tells you what a structured settlement is and what a structured order is, and when such an annuity or lump sum is exempt.

Amendment history: Inserted by No 139 of 2002, effective 19 Dec 2002

s 54-5 — Definitions

In this Division: date of the settlement or order : (a) for a * structured settlement, means: (i) the date on which the agreement that is the structured settlement was entered into; or (ii) if that agreement depends, for its effectiveness, on being approved (however described) by an order of a court, or on being embodied in a consent order made by a court, the date on which that order was made; and (b) for a * structured order, means the date on which the order was made. personal injury annuity means an * annuity: (a) that is purchased under the terms of a * structured settlement as mentioned in paragraph 54 ‑ 10(1)(e); or (b) that is purchased under the terms of a * structured order as mentioned in paragraph 54 ‑ 10(1A)(e). personal injury lump sum means a lump sum: (a) that is purchased under the terms of a * structured settlement as mentioned in paragraph 54 ‑ 10(1)(e); or (b) that is purchased under the terms of a * structured order as mentioned in paragraph 54 ‑ 10(1A)(e).

Amendment history: Inserted by No 139 of 2002, effective 19 Dec 2002

s 54-10 — Meaning of structured settlement and structured order

(1) A structured settlement is a settlement of a claim that satisfies the following conditions: (a) the claim: (i) is for compensation or damages for, or in respect of, personal injury suffered by a person (the injured person ); and (ii) is made by the injured person or by his or her * legal personal representative; (b) the claim is based on the commission of a wrong, or on a right created by statute; (c) the claim is made against a person (the defendant ) and satisfies the following conditions: (i) the claim is not made against the defendant in his or her capacity as an employer, or * associate of an employer, of the injured person; (ii) the claim is not made under a * workers’ compensation law, and is not made as an alternative to a claim under such a law; (d) the settlement takes the form of a written agreement between the parties to the claim (whether or not that agreement is approved by an order of a court, or is embodied in a consent order made by a court); (e) under the terms of the settlement, some or all of the compensation or damages is to be used by the defendant (or by a person with whom the defendant has insurance against the liability to which the claim relates) to purchase from one or more * life insurance companies or * State insurers: (i) an * annuity or annuities to be paid to the injured person, or to a trustee for the benefit of the injured person; or (ii) such an annuity or annuities, together with one or more lump sums that are also to be paid to the injured person, or to a trustee for the benefit of the injured person. (1A) A structured order is an order of a court that satisfies the following conditions: (a) the order is made in respect of a claim that: (i) is for compensation or damages for, or in respect of, personal injury suffered by a person (the injured person ); and (ii) is made by the injured person or by his or her * legal personal representative; (b) the order is not an order approving or endorsing an agreement as mentioned in paragraph (1)(d); (c) the claim is based on the commission of a wrong, or on a right created by statute; (d) the claim is made against a person (the defendant ) and satisfies the following conditions: (i) the claim is not made against the defendant in his or her capacity as an * employer, or * associate of an employer, of the injured person; (ii) the claim is not made under a * workers’ compensation law, and is not made as an alternative to a claim under such a law; (e) under the terms of the order, some or all of the compensation or damages is to be used by the defendant (or by a person with whom the defendant has insurance against the liability to which the claim relates) to purchase from one or more * life insurance companies or * State insurers: (i) an * annuity or annuities to be paid to the injured person, or to a trustee for the benefit of the injured person; or (ii) such an annuity or annuities, together with one or more lump sums that are also to be paid to the injured person, or to a trustee for the benefit of the injured person. (3) If a claim is both: (a) for compensation or damages for personal injury suffered by a person; and (b) for some other remedy (for example, compensation or damages for loss of, or damage to, property); this section applies to the claim, but only to the extent that it relates to the compensation or damages referred to in paragraph (a), and only to annuities or lump sums that, in the settlement agreement, or in the order, are identified as being solely in payment of that compensation or those damages.

Amendment history: Inserted by No 139 of 2002, effective 19 Dec 2002 | Amended by No 88 of 2009, effective s. 4, Schedule 3 (items 1, 5–23), Schedule 4 (items 2–5) and Schedule 5 (items 113–204, 237, 238, 258, 282, 319–341, 344): 18 Sept 2009 Schedule 2 (items 4–15, 25–27, 30, 31): 1 Oct 2009 Schedule 2 (item 23): 1 Jan 2010

s 54-15 — Personal injury annuity exemption for injured person

A payment of a * personal injury annuity that is made to the * injured person is exempt from income tax if the conditions in this Subdivision are satisfied. Note: Section 54 ‑ 70 provides a tax exemption if the payment is instead made to the trustee of a trust.

Amendment history: Inserted by No 139 of 2002, effective 19 Dec 2002

s 54-20 — Lump sum compensation etc. would not have been assessable

If the compensation or damages that were used to purchase the * annuity had instead been paid to the * injured person in a single lump sum on the * date of the settlement or order, the compensation or damages would not have been assessable income. Note: Paragraph 118 ‑ 37(1)(b) disregards a capital gain or capital loss that arises from compensation or damages the injured person receives for any wrong he or she suffers personally.

Amendment history: Inserted by No 139 of 2002, effective 19 Dec 2002

s 54-25 — Requirements of the annuity instrument

The * annuity instrument must: (a) identify the * structured settlement or * structured order under which the * annuity is provided; and (b) only allow for payments of the annuity to be made to: (i) the injured person; or (ii) a trustee of a trust of which the injured person is the beneficiary; or (iii) a reversionary beneficiary, or the injured person’s estate, in accordance with section 54 ‑ 35; and (c) contain a statement to the effect that the annuity cannot be assigned, and cannot be commuted except as mentioned in section 54 ‑ 35. Note: Division 2A of Part 10 of the Life Insurance Act 1995 makes a purported assignment or commutation that is contrary to paragraph (c) ineffective.

Amendment history: Inserted by No 139 of 2002, effective 19 Dec 2002

s 54-30 — Requirements for payments of the annuity

(1) The * annuity instrument must provide that payments of the * annuity are to be made at least annually: (a) over a period of at least 10 years during the life of the * injured person; or (b) for the life of the injured person. (2) The * annuity instrument must specify: (a) the date of the first payment of the * annuity; and (b) if the annuity instrument specifies a period of years—the date of the last payment in that period; and (c) the amount of each periodic payment of the annuity. (3) The * annuity instrument may only allow the amount of a payment to be varied by increasing the amount: (a) in order to maintain its real value: (i) by indexation by reference to increases in the * All Groups Consumer Price Index number; or (ii) by indexation by reference to increases in the full ‑ time adult average weekly ordinary time earnings, published by the Australian Statistician; or (b) by a percentage specified in the annuity instrument. (4) The * annuity instrument may only allow the amount of a particular payment to be varied: (a) by only one of the methods referred to in subsection (3); or (b) by whichever of 2 or more of those methods would result in the biggest or smallest increase. (5) A reference in this section to specifying a date or percentage requires an actual date or figure to be specified, not merely a method of determining a date or figure. Example: Under subsection (2), “13 September 2002” would be allowed, but “The date on which the annuitant finishes university” would not be allowed.

Amendment history: Inserted by No 139 of 2002, effective 19 Dec 2002

s 54-35 — Payments during the guarantee period on the death of the injured person

(1) This section applies if the * annuity instrument provides for payments to be made to the * injured person during any part of the period ending 10 years after the * date of the settlement or order (whether the * annuity is expressed to be for the life of the person or for a period of years). (2) The * annuity instrument may specify a period (the guarantee period ) of up to 10 years after the * date of the settlement or order, during which, if the * injured person dies, the payments (the remaining payments ) for the remainder of the guarantee period that would have been paid to the injured person are to be paid instead to: (a) the injured person’s estate; or (b) a reversionary beneficiary. Note: For tax exemptions in this situation, see sections 54 ‑ 65 and 54 ‑ 70. (3) If the * annuity instrument provides for the remaining payments to be made to a reversionary beneficiary, the instrument must: (a) name the beneficiary; and (b) allow the beneficiary to choose either: (i) to be paid the amounts of the remaining payments when the injured person would have received them; or (ii) to commute those payments into a lump sum worked out under subsection (5). (4) The * injured person’s estate may only be paid the lump sum worked out under subsection (5) (and not the periodic payments). (5) The amount of the lump sum under subparagraph (3)(b)(ii) or subsection (4) is the * policy termination value of the * life insurance policy that is the * annuity instrument, as calculated by an * actuary as at the date of the injured person’s death. In making this calculation, the following are to be disregarded: (a) any payments of the annuity due to be made after the end of the guarantee period; (b) any * structured settlement lump sums that are also provided for by that policy. (6) In this section: pay to a person includes pay to the trustee of a trust of which the person is the beneficiary. pay to the injured person’s estate includes pay to the trustee of a trust established by the * injured person’s will.

Amendment history: Inserted by No 139 of 2002, effective 19 Dec 2002

s 54-40 — Requirement for minimum monthly level of support

(1) Either: (a) the * annuity instrument must provide; or (b) if there is more than one * annuity provided under the * structured settlement or * structured order—the annuity instruments for all of those annuities that satisfy the other conditions in this Subdivision, taken as a whole, must provide; that at least once a month for the life of the * injured person, he or she is to be paid an amount that equals or exceeds the minimum monthly level of support. (2) The minimum monthly level of support means: (a) for the year starting on the * date of the settlement or order—one twelfth of the amount that is, on that date, the sum of: (i) the maximum basic rate of age pension payable to a person in accordance with item 1 of Table B in point 1064 ‑ B1 of Pension Rate Calculator A in section 1064 of the Social Security Act 1991 ; and (ii) the amount of a person’s pension supplement, worked out (using that maximum basic rate) in accordance with Module BA of that Pension Rate Calculator; and (b) for any subsequent year starting on an anniversary of the date of the settlement or order: (i) if the indexation factor for the year (see subsection (3)) is greater than 1—the amount worked out under subsection (4); or (ii) otherwise—the minimum monthly level of support for the previous year. Note: In working out the rate and amount that count for the purposes of paragraph (a), the effect of the indexation provisions in sections 1191 to 1195 of the Social Security Act 1991 must be taken into account. The indexed figures are available from the Department administered by the Minister administering the Human Services (Centrelink) Act 1997 . (3) The indexation factor for a year is to be worked out on the anniversary of the * date of the settlement or order in accordance with the formula: where: base year means: (a) if there have been one or more previous years for which the indexation factor was greater than 1—the year ending immediately before the most recent year for which the indexation factor was greater than 1; or (b) otherwise—the year ending immediately before the * date of the settlement or order. Note: This has effect subject to subsection (6). (4) If the indexation factor for a year is greater than 1, then the minimum monthly level of support for the year is the amount worked out in accordance with the following formula: (5) The results under subsections (3) and (4) must be rounded to 3 decimal places (rounding up if the fourth decimal place is 5 or more). (6) The indexation factor for a year must be worked out by reference to figures for the same * quarter (for example, the March quarter) as has been used in previous years, even if, on the anniversary of the * date of the settlement or order, the * All Groups Consumer Price Index number for that quarter has not yet been published. If this happens, the calculation must be made as soon as practicable after the number for that quarter is published. (7) In this section: pay to a person includes pay to the trustee of a trust of which the person is the beneficiary.

Amendment history: Inserted by No 139 of 2002, effective 19 Dec 2002 | Amended by No 32 of 2011, effective Schedule 4 (item 285): 1 July 2011

s 54-45 — Personal injury lump sum exemption for injured person

A payment of a * personal injury lump sum that is made to the * injured person is exempt from income tax if: (a) there is at least one * personal injury annuity (provided under the same * structured settlement or * structured order) that satisfies the conditions in Subdivision 54 ‑ B; and (b) the other conditions in this Subdivision are satisfied. Note: Section 54 ‑ 70 provides a tax exemption if the payment is instead made to the trustee of a trust.

Amendment history: Inserted by No 139 of 2002, effective 19 Dec 2002

s 54-50 — Lump sum compensation would not have been assessable

If the compensation or damages that were used to purchase the * personal injury lump sum had instead been paid to the * injured person on the * date of the settlement or order, the compensation or damages would not have been assessable income. Note: Paragraph 118 ‑ 37(1)(b) disregards a capital gain or capital loss that arises from compensation or damages the injured person receives for any wrong he or she suffers personally.

Amendment history: Inserted by No 139 of 2002, effective 19 Dec 2002

s 54-55 — Requirements of the instrument under which the lump sum is paid

The instrument under which the * personal injury lump sum is paid must: (a) identify the * structured settlement or * structured order under which the lump sum is provided; and (b) only allow for the payment of the lump sum to be made to: (i) the * injured person; or (ii) a trustee of a trust of which the injured person is the beneficiary; and (c) contain a statement to the effect that the right to receive the lump sum cannot be assigned, and cannot be commuted or otherwise cashed ‑ out early. Note: Division 2A of Part 10 of the Life Insurance Act 1995 makes a purported assignment or commutation (or cashing ‑ out) that is contrary to paragraph (c) ineffective.

Amendment history: Inserted by No 139 of 2002, effective 19 Dec 2002

s 54-60 — Requirements for payments of the lump sum

(1) The instrument under which the * personal injury lump sum is paid must specify the date and amount of the payment of the lump sum. (2) The instrument may only allow the amount of the payment to be varied by increasing the amount: (a) in order to maintain its real value: (i) by indexation by reference to increases in the * All Groups Consumer Price Index number; or (ii) by indexation by reference to increases in the full ‑ time adult average weekly ordinary time earnings, published by the Australian Statistician; or (b) by a percentage specified in the instrument. (3) The instrument may only allow the amount of the payment to be varied: (a) by only one of the methods referred to in subsection (2); or (b) by whichever of 2 or more of those methods would result in the biggest or smallest increase. (4) A reference in this section to specifying a date or percentage requires an actual date or figure to be specified, not merely a method of determining a date or figure. Example: Under subsection (1), “13 September 2002” would be allowed, but “The date on which the annuitant finishes university” would not be allowed.

Amendment history: Inserted by No 139 of 2002, effective 19 Dec 2002

s 54-65 — Exemption for certain payments to reversionary beneficiaries

A payment that is made to the reversionary beneficiary of a * personal injury annuity for which there is a * guarantee period is exempt from income tax if: (a) the payment is a periodic or lump sum payment made in accordance with subsection 54 ‑ 35(3); and (b) either: (i) if subparagraph 54 ‑ 35(3)(b)(i) applies—the payment; or (ii) if subparagraph 54 ‑ 35(3)(b)(ii) applies—each of the payments taken into account in working out the amount of the lump sum under subsection 54 ‑ 35(5); would be exempt from income tax under this Division if the * injured person were still alive and the payment, or each of the payments, were instead made to the injured person.

Amendment history: Inserted by No 139 of 2002, effective 19 Dec 2002

s 54-70 — Special provisions about trusts

(1) A payment of a * personal injury annuity or a * personal injury lump sum to the trustee of a trust is exempt from income tax for the trustee if: (a) the beneficiary of the trust is the * injured person; and (b) because of Subdivision 54 ‑ B or 54 ‑ C, the payment would have been exempt from income tax if it had been made directly to the beneficiary. (2) A payment made in accordance with paragraph 54 ‑ 35(3)(b) to the trustee of a trust is exempt from income tax for the trustee if: (a) the beneficiary of the trust is the reversionary beneficiary; and (b) because of section 54 ‑ 65, the payment would have been exempt from income tax if it had been made directly to the beneficiary. (3) A payment of a lump sum in accordance with subsection 54 ‑ 35(4) to the trustee of a trust is exempt from income tax for the trustee. (4) If a payment is exempt from income tax for a trustee because of this section, the payment is also exempt from income tax for a beneficiary, or the beneficiary, of the trust, even if the trustee: (a) pays all or part of the payment to the beneficiary; or (b) applies all or part of the payment for the benefit of the beneficiary.

Amendment history: Inserted by No 139 of 2002, effective 19 Dec 2002

s 54-75 — Minister to arrange for review and report

(1) The Minister must cause a person to review, and to report to the Minister in writing about, the operation of the following provisions (the structured settlements and orders provisions ): (a) the other provisions of this Division; (b) Division 2A of Part 10 of the Life Insurance Act 1995 . (2) The person must be someone who, in the Minister’s opinion, is suitably qualified and appropriate to conduct the review. (3) The review and report must relate to the period beginning when this Division commences and ending after 4 years and 6 months. (4) The person must give the report to the Minister as soon as practicable, and in any event within 6 months, after the end of that period. (5) The report may include suggestions for changes to the structured settlements and orders provisions that, in the person’s opinion, are needed to overcome, or would help overcome, problems identified during the review and set out in the report. (6) The person must provide a reasonable opportunity for members of the public to make submissions to him or her about matters to which the review relates. (7) The Minister must cause a copy of the report to be laid before each House of the Parliament within 15 sitting days of that House after the Minister receives the report.

Amendment history: Inserted by No 139 of 2002, effective 19 Dec 2002

s 55-1 — What this Division is about

A variety of payments are not exempt from income tax even though they are similar in nature to payments that are wholly or partly exempt under this Part. Table of sections Operative provisions 55 ‑ 5 Occupational superannuation payments 55 ‑ 10 Education entry payments

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5))

s 55-5 — Occupational superannuation payments

(1) This Part does not exempt from income tax any amount or pension paid under the following provisions or Acts, or under schemes established under any of them: (a) Defence Force Retirement and Death Benefits Act 1973 ; (b) Defence Forces Retirement Benefits Act 1948 ; (c) Military Superannuation and Benefits Act 1991 ; (ca) Australian Defence Force Superannuation Act 2015 ; (cb) Australian Defence Force Cover Act 2015 ; (d) Papua New Guinea (Staffing Assistance) Act 1973 ; (e) Parliamentary Contributory Superannuation Act 1948 ; (f) section 10 of the Superannuation (Pension Increases) Act 1971 ; (g) section 9 or 14 of the Superannuation Act (No. 2) 1956 ; (h) subsection 8(1) of the Superannuation Act 1948 ; (i) Superannuation Act 1922 ; (j) Superannuation Act 1976 ; (k) Superannuation Act 1990 ; (l) Superannuation Act 2005 . (2) This section operates despite anything contained in any other provision of this Part.

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5)) | Amended by No 81 of 2005, effective Schedule 7 (items 2, 3): 1 July 2005 | Amended by No 120 of 2015, effective Sch 1 (item 54): 11 Sept 2015 (s 2(1) item 2)

s 55-10 — Education entry payments

This Part does not exempt from income tax an education entry payment under Part 2.13A of the Social Security Act 1991 .

Amendment history: Inserted by No 121 of 1997, effective s 4: 8 July 1997 (s 2(1)) Sch 1, Sch 2 (items 3–17), Sch 3 (items 3–30), Sch 4 (items 5–62, Sch 5 (items 3–42), Sch 6 (items 3–67), Sch7 (items 2–4), Sch 8 (items 2–31), Sch 9 (items 3–15), Sch 10 (items 2–11), Sch 11 (items 2–36) and Sch 12 (items 1–14): 1 July 1997 (s 2(2), (3), (4) (5))

s 58-1 — What this Division is about

This Division sets out special rules that apply in calculating deductions for the decline in value of depreciating assets and balancing adjustments for assets previously owned by an exempt entity if the assets: • continue to be owned by that entity after the entity becomes taxable; or • are acquired from that entity, in connection with the acquisition of a business, by a purchaser that is a taxable entity. There is a choice of 2 methods for each depreciating asset: • the notional written down value method; and • the undeducted pre ‑ existing audited book value method.

Amendment history: Inserted by No 93 of 1999, effective Schedule 4 (item 24): 16 Apr 1998 Remainder: Royal Assent | Repealed and substituted by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1))

s 58-5 — Application of Division

(1) This Division applies in 2 situations. Entity sale (2) The first (an entity sale situation ) is where: (a) at a particular time on or after 1 July 2001, an entity is an * exempt entity; and (b) just after that time, the entity’s * ordinary income or * statutory income becomes to any extent assessable income. (3) In an entity sale situation: (a) the entity is a transition entity ; and (b) the time when the entity’s * ordinary income or * statutory income becomes to that extent assessable is the transition time ; and (c) the income year in which the * transition time occurs is the transition year for the entity; and (d) the * depreciating assets the * transition entity * held just before the transition time are privatised assets . Asset sale (4) The second (an asset sale situation ) is where: (a) at a particular time on or after 1 July 2001, an entity (the purchaser ) whose * ordinary income or statutory income is to any extent assessable acquires a * depreciating asset from the Commonwealth, a State, a Territory or an * exempt entity; and (b) the asset is acquired in connection with the acquisition of a * business from the Commonwealth, the State, the Territory or the exempt entity. (5) In an asset sale situation: (a) the Commonwealth, the State, the Territory or the * exempt entity is the tax exempt vendor ; and (b) the time when the * depreciating asset is acquired is the acquisition time ; and (c) the income year in which the * acquisition time occurs is the acquisition year ; and (d) each * depreciating asset the purchaser acquires from the * tax exempt vendor at the acquisition time is a privatised asset .

Amendment history: Inserted by No 93 of 1999, effective Schedule 4 (item 24): 16 Apr 1998 Remainder: Royal Assent | Repealed and substituted by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1)) | Amended by No 78 of 2007, effective Schedule 7 (items 2–14): 1 July 2005 Schedule 8 (items 350–353): 19 Dec 2002 (s 2(1) item 7) Remainder: Royal Assent

s 58-10 — When an asset is acquired in connection with the acquisition of a business

(1) A * depreciating asset is taken to be acquired in connection with the acquisition of a * business from the Commonwealth, the State, the Territory or the * exempt entity if and only if: (a) the asset was used by the Commonwealth, the State, the Territory or the exempt entity in carrying on a business and the purchaser or another entity uses the asset in carrying on the business; or (b) subsection (2) applies. (2) This subsection applies if: (a) the asset was used by the Commonwealth, the State, the Territory or the * exempt entity in performing functions, or engaging in activities, that did not constitute the carrying on of a * business by the Commonwealth, the State, the Territory or the exempt entity and the asset is used by the purchaser or another entity in performing those functions or engaging in those activities as part of carrying on a business; or (b) all of these subparagraphs apply: (i) the acquisition by the purchaser of the asset was connected with the acquisition of another asset by the purchaser or another entity from the Commonwealth, the State, the Territory or the exempt entity or from an * associate of the Commonwealth, the State, the Territory or the exempt entity; (ii) ownership of the other asset gives the purchaser or other entity a right, or imposes on the purchaser or other entity an obligation, to perform functions or engage in activities as part of the carrying on of a business or confers on the purchaser or other entity a commercial advantage or opportunity in connection with performing functions or engaging in activities as part of the carrying on of a business; (iii) the asset is used by the purchaser or other entity in performing those functions or engaging in those activities under the right or obligation or in taking the benefit of the advantage or opportunity; or (c) the asset was acquired by the purchaser under an * arrangement under which the purchaser or another entity acquired another asset from the Commonwealth, the State, the Territory or the exempt entity or from an associate of the Commonwealth, the State, the Territory or the exempt entity and: (i) the other asset is taken by paragraph (1)(a), or by paragraph (a) or (b) of this subsection; or (ii) where the other asset is not a depreciating asset, it would, if it were a depreciating asset, be taken by paragraph (1)(a), or by paragraph (a) or (b) of this subsection; to be acquired in connection with the acquisition of a business from the Commonwealth, the State, the Territory or the exempt entity. (3) Paragraphs (2)(a), (b) and (c) do not apply if the asset is used by the purchaser solely to * derive assessable income from the provision of office or residential accommodation.

Amendment history: Inserted by No 93 of 1999, effective Schedule 4 (item 24): 16 Apr 1998 Remainder: Royal Assent | Repealed and substituted by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1)) | Amended by No 58 of 2006, effective s. 4, Schedules 1, 2, Schedule 3 (items 1–3, 7), Schedule 4, Schedule 5 (items 1–3) and Schedule 7 (items 51–113, 213–216, 257–263): Royal Assent Sch 7 (items 179–188): 1 July 2004 (s 2(1) item 15) Sch 7 (item 189): 5 July 1999 (s 2(1) item 16) Sch 7 (item 190): 30 June 2000 (s 2(1) item 17) Sch 7 (item 191): 24 Oct 2002 (s 2(1) item 18) Sch 7 (item 192): 30 June 2004 (s 2(1) item 19) Sch 7 (item 193): 22 Dec 1999 (s 2(1) item 20) | Amended by No 78 of 2007, effective Schedule 7 (items 2–14): 1 July 2005 Schedule 8 (items 350–353): 19 Dec 2002 (s 2(1) item 7) Remainder: Royal Assent

s 58-60 — Purpose of rules in this Subdivision

This Subdivision sets out rules that affect the way in which the * transition entity or the purchaser work out the decline in value of, and balancing adjustments for, * privatised assets under Division 40 after the * transition time or the * acquisition time.

Amendment history: Inserted by No 93 of 1999, effective Schedule 4 (item 24): 16 Apr 1998 Remainder: Royal Assent | Repealed and substituted by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1))

s 58-65 — Choice of method to work out cost of privatised asset

(1) The * transition entity or the purchaser has a choice to work out the first element of the * cost of each * privatised asset. (2) The choice is to use either: (a) the * notional written down value of the asset; or (b) the * undeducted pre ‑ existing audited book value (if any) of the asset. (3) The choice must be made: (a) for the * transition entity—by the day on which the transition entity lodges its * income tax return for the * transition year; or (b) for the purchaser—by the day on which the purchaser lodges the purchaser’s income tax return for the * acquisition year; or within a further period allowed by the Commissioner. (4) The choice, once made, cannot be changed.

Amendment history: Inserted by No 93 of 1999, effective Schedule 4 (item 24): 16 Apr 1998 Remainder: Royal Assent | Repealed and substituted by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1)) | Amended by No 97 of 2008, effective Sch 1 (items 3–12) and Sch 3 (items 44–173, 189): 3 Oct 2008 (s 2(1) items 2, 3–5)

s 58-70 — Application of Division 40

Application of Division 40 (1) The * transition entity and the purchaser work out the decline in value of, and the effect of a * balancing adjustment event occurring for, each * privatised asset using Division 40 (Capital allowances) as if the asset had been acquired under a contract entered into on or after 1 July 2001. Entity sale situation (2) Division 40 applies to a * privatised asset * held by the * transition entity as if the asset had not been used, or * installed ready for use, for any purpose before the * transition time. (3) The first element of the * cost to the * transition entity at the * transition time is the * notional written down value of the asset or the * undeducted pre ‑ existing audited book value of the asset (depending on the choice made for the asset). (4) No amount incurred before the * transition time is included in the second element of the * cost of a * privatised asset. Asset sale situation (5) The first element of the * cost of a * privatised asset to the purchaser at the * acquisition time is the sum of: (a) the * notional written down value of the asset or the * undeducted pre ‑ existing audited book value of the asset (depending on the choice made for the asset); and (b) the amount of any incidental costs to the purchaser in acquiring the asset.

Amendment history: Inserted by No 93 of 1999, effective Schedule 4 (item 24): 16 Apr 1998 Remainder: Royal Assent | Repealed and substituted by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1))

s 58-75 — Meaning of notional written down value

(1) The notional written down value of a * privatised asset is its * adjustable value in the hands of: (a) the * transition entity just before the * transition time; or (b) the * tax exempt vendor just before the * acquisition time; worked out using the assumptions in this section. Application of Division 40 (2) Assume that Division 40 had always applied to work out the decline in value of the * privatised asset. Use for taxable purposes (3) Assume that, in applying Division 40 to the * privatised asset, it had always been used by the * transition entity or the * tax exempt vendor wholly for * taxable purposes. Cost and acquisition time: exempt Australian government agency (4) If the * transition entity or the * tax exempt vendor was an * exempt Australian government agency just before the * transition time and had acquired the * privatised asset from another exempt Australian government agency: (a) assume that the transition entity or tax exempt vendor acquired it at the time when it was acquired or constructed by the other exempt Australian government agency and that the first element of its * cost to the transition entity or tax exempt vendor is the amount that was its cost to the other exempt Australian government agency; or (b) if it had, before its acquisition by the transition entity or tax exempt vendor, been successively * held by 2 or more exempt Australian government agencies—assume that: (i) the transition entity or tax exempt vendor acquired it at the time when it was acquired or constructed by the first of those exempt Australian government agencies that owned it; and (ii) the first element of its cost to the transition entity or tax exempt vendor is the sum of the amount that was the first element of its cost to the first of those exempt Australian government agencies that owned it and any amount included in the second element of its cost for that first agency or a later successive agency. Effective life (5) Assume that: (a) the * transition entity or the * tax exempt vendor had chosen to use an * effective life determined by the Commissioner for the * privatised asset as in force at the * transition time or the * acquisition time; and (b) subsection 40 ‑ 95(2) did not apply. (5A) Assume that section 40 ‑ 102 did not apply to a * privatised asset unless all of the following are satisfied: (a) it is an entity sale situation within the meaning of section 58 ‑ 5; (b) a * capped life applies to the asset under subsection 40 ‑ 102(4) or (5) at both the asset’s * start time and the * transition time; (c) the * transition entity chooses, for the purposes of this section, to have section 40 ‑ 102 apply to the asset. If section 40 ‑ 102 is to be applied to the asset, disregard paragraphs 40 ‑ 102(2)(a) and (b) and assume that the relevant time for the purposes of the application of that section to the asset were the transition time. (6) Assume also that section 40 ‑ 110 (about recalculating effective life) did not apply.

Amendment history: Inserted by No 93 of 1999, effective Schedule 4 (item 24): 16 Apr 1998 Remainder: Royal Assent | Repealed and substituted by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1)) | Amended by No 53 of 2002, effective Schedules 3 and 4: 1 July 2002 Remainder: Royal Assent

s 58-80 — Meaning of undeducted pre ‑ existing audited book value

(1) The undeducted pre ‑ existing audited book value of a * privatised asset is its * adjustable value in the hands of: (a) the * transition entity just before the * transition time; or (b) the * tax exempt vendor just before the * acquisition time; worked out using the assumptions in this section. Application of Division 40 (2) Assume that Division 40 had always applied to work out the decline in value of the * privatised asset. Use for taxable purposes (3) Assume that, in applying Division 40 to the * privatised asset, it had always been used by the * transition entity or the * tax exempt vendor wholly for * taxable purposes. Cost (4) Assume that: (a) the first element of the * privatised asset’s * cost to the * transition entity or the * tax exempt vendor is its * pre ‑ existing audited book value as at the latest time (the test time ) at which it had a pre ‑ existing audited book value; and (b) no amount was included in the second element of the asset’s cost before the test time; and (c) any amount included in the second element of the asset’s cost after the test time had been incurred by the transition entity or the tax exempt vendor. Acquisition time (5) Assume that the * transition entity or the * tax exempt vendor had acquired the * privatised asset at the test time. Effective life (6) Assume that: (a) the * transition entity or the * tax exempt vendor had chosen to use an * effective life determined by the Commissioner for the * privatised asset as in force at the * transition time or the * acquisition time; and (b) subsection 40 ‑ 95(2) did not apply. Note: Section 40 ‑ 102 does not apply to a privatised asset for the purposes of this section. (7) Assume also that section 40 ‑ 110 (about recalculating effective life) did not apply.

Amendment history: Inserted by No 93 of 1999, effective Schedule 4 (item 24): 16 Apr 1998 Remainder: Royal Assent | Repealed and substituted by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1)) | Amended by No 53 of 2002, effective Schedules 3 and 4: 1 July 2002 Remainder: Royal Assent

s 58-85 — Pre ‑ existing audited book value of depreciating asset

(1) A * privatised asset has a pre ‑ existing audited book value if: (a) a balance sheet, as at the end of an annual accounting period (the balance date ), that was prepared as part of the final accounts of the Commonwealth, a State, a Territory or an * exempt entity for that period showed the asset as an asset of the relevant entity and specified a value for it; and (b) a qualified independent auditor who was engaged, or was required by law, to undertake an audit of those accounts had prepared and signed, before 4 August 1997, a final audit report on those accounts; and (c) the report did not state that the auditor was not satisfied that the specified value fairly represented the value of the asset. The asset is taken to have had a pre ‑ existing audited book value at the balance date of an amount equal to the specified value. (2) If a balance sheet did not specify a value for the asset but specified a total value for 2 or more assets including the asset, the balance sheet is taken to have specified as the value of the asset so much of that total value as is reasonably attributable to the asset.

Amendment history: Inserted by No 93 of 1999, effective Schedule 4 (item 24): 16 Apr 1998 Remainder: Royal Assent | Amended by No 164 of 1999, effective Sch 1, Sch 2 (items 1–16, 19–23), Sch 3 (items 1–10, 14) and Sch 4–6: 10 Dec 1999 (s 2(1)) Sch 2 (items 17, 18): never commenced (s 2(2)) | Amended by No 169 of 1999, effective Sch 5 (items 1–12): 22 Feb 1999 (s 2(2)) Sch 1 (items 1–13, 18), Sch 2 (items 1–3, 5), Sch 3 (items 1–4, 7), Sch 4 (items 1–15, 19), Sch 6, Sch 7 (item 11), Sch 8, Sch 9 (items 1–14, 23–33) and Sch 10: 10 Dec 1999 (s 2(1)) | Repealed and substituted by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1)) | Amended by No 78 of 2007, effective Schedule 7 (items 2–14): 1 July 2005 Schedule 8 (items 350–353): 19 Dec 2002 (s 2(1) item 7) Remainder: Royal Assent

s 58-90 — Method and effective life for transition entity

(1) The * transition entity must, in working out the decline in value of a * privatised asset, use the * diminishing value method or the * prime cost method for the asset that it used to work out the * notional written down value, or the * undeducted pre ‑ existing audited book value, of the asset. (2) In working out the decline in value of a * privatised asset held by a * transition entity: (a) if section 40 ‑ 102 applied to the asset for the purposes of subsection 58 ‑ 75(5A)—section 40 ‑ 102 applies to the asset and applies as if the relevant time for the asset for the purposes of that section were the * transition time; or (b) if section 40 ‑ 102 did not apply to the asset for the purposes of subsection 58 ‑ 75(5A) or section 58 ‑ 80—section 40 ‑ 102 does not apply to the asset.

Amendment history: Inserted by No 93 of 1999, effective Schedule 4 (item 24): 16 Apr 1998 Remainder: Royal Assent | Repealed and substituted by No 77 of 2001, effective Sch 2 (items 149–476, 488): 30 June 2001 (s 2(1)) | Amended by No 53 of 2002, effective Schedules 3 and 4: 1 July 2002 Remainder: Royal Assent

s 59-1 — What this Division is about

This Division details particular amounts that are non ‑ assessable non ‑ exempt income. Table of sections Operative provisions 59 ‑ 10 Compensation under firearms surrender arrangements 59 ‑ 15 Mining payments 59 ‑ 20 Taxable amounts relating to franchise fees windfall tax 59 ‑ 25 Taxable amounts relating to Commonwealth places windfall tax 59 ‑ 30 Amounts you must repay 59 ‑ 35 Amounts that would be mutual receipts but for prohibition on distributions to members or issue of MCIs 59 ‑ 40 Issue of rights 59 ‑ 50 Native title benefits 59 ‑ 55 2019 ‑ 20 bushfires—payments for volunteer work with fire services 59 ‑ 60 2019 ‑ 20 bushfires—disaster relief payments and non ‑ cash benefits 59 ‑ 65 Water infrastructure improvement payments 59 ‑ 67 Meaning of SRWUIP program , SRWUIP payment , direct SRWUIP payment and indirect SRWUIP payment 59 ‑ 70 List of SRWUIP programs 59 ‑ 75 Commissioner to be kept informed 59 ‑ 80 Amending assessments 59 ‑ 85 2019 floods—recovery grants for small businesses, primary producers and non ‑ profit organisations 59 ‑ 86 2019 floods—on ‑ farm grant program for primary producers 59 ‑ 90 Cash flow boost 59 ‑ 95 Coronavirus economic response payment 59 ‑ 96 COVID ‑ 19 disaster payment 59 ‑ 97 State and Territory grants to small business relating to the recovery from the coronavirus known as COVID ‑ 19 59 ‑ 98 Commonwealth small business support payments relating to the coronavirus known as COVID ‑ 19 59 ‑ 99 2021 floods and storms—recovery grants 59 ‑ 100 Refund of large ‑ scale generation shortfall charge 59 ‑ 105 Cyclone Seroja—recovery grants 59 ‑ 110 Payment to victim following perpetrator contributions release order

Amendment history: Inserted by No 66 of 2003, effective s 4, Sch 2 (items 1–5, 17), Sch 3 (items 49–70, 71–128, 129–131, 140, 141), Sch 4, Sch 6 (items 1, 3) and Sch 7 (items 6–9): 30 June 2003 (s 2(1) items 1, 3, 6–8, 8B–12, 12B, 14, 15, 17, 18) Sch 3 (items 70A, 128A): 2 Apr 2003 (s 2(1) items 8A, 12A)

s 59-10 — Compensation under firearms surrender arrangements

A payment made to you by way of compensation under * firearms surrender arrangements for any loss of business is not assessable income and is not * exempt income.

Amendment history: Inserted by No 66 of 2003, effective s 4, Sch 2 (items 1–5, 17), Sch 3 (items 49–70, 71–128, 129–131, 140, 141), Sch 4, Sch 6 (items 1, 3) and Sch 7 (items 6–9): 30 June 2003 (s 2(1) items 1, 3, 6–8, 8B–12, 12B, 14, 15, 17, 18) Sch 3 (items 70A, 128A): 2 Apr 2003 (s 2(1) items 8A, 12A)

s 59-15 — Mining payments

(1) These are not assessable income and are not * exempt income: (a) a * mining payment made to a * distributing body; (b) a mining payment made to one or more * Indigenous persons, or applied for their benefit. (2) A payment: (a) made to a * distributing body; or (b) made to one or more * Indigenous persons, or applied for their benefit; is not assessable income and is not * exempt income if the payment is made by a * distributing body out of a * mining payment that it has received. (3) A payment made to a * distributing body by another distributing body, out of a * mining payment received by the other distributing body, is taken to be a mining payment for the purposes of: (a) any further applications of subsection (2); and (b) any further applications of this subsection. (4) Subsection (2) does not apply to a payment by a * distributing body for the purposes of meeting its administrative costs. (5) This section does not apply to an amount paid to or applied for the benefit of a person if it is remuneration or consideration for goods or services provided by that person.

Amendment history: Inserted by No 66 of 2003, effective s 4, Sch 2 (items 1–5, 17), Sch 3 (items 49–70, 71–128, 129–131, 140, 141), Sch 4, Sch 6 (items 1, 3) and Sch 7 (items 6–9): 30 June 2003 (s 2(1) items 1, 3, 6–8, 8B–12, 12B, 14, 15, 17, 18) Sch 3 (items 70A, 128A): 2 Apr 2003 (s 2(1) items 8A, 12A) | Amended by No 84 of 2013, effective s 4, Sch 1 (items 2–9, 19–23), Sch 2, Sch 3, Sch 6 and Sch 8 (items 27–32): 28 June 2013 (s 2(1) items 1, 2, 4)

s 59-20 — Taxable amounts relating to franchise fees windfall tax

Taxable amounts on which tax is imposed by the Franchise Fees Windfall Tax (Imposition) Act 1997 are not assessable income and are not * exempt income.

Amendment history: Inserted by No 66 of 2003, effective s 4, Sch 2 (items 1–5, 17), Sch 3 (items 49–70, 71–128, 129–131, 140, 141), Sch 4, Sch 6 (items 1, 3) and Sch 7 (items 6–9): 30 June 2003 (s 2(1) items 1, 3, 6–8, 8B–12, 12B, 14, 15, 17, 18) Sch 3 (items 70A, 128A): 2 Apr 2003 (s 2(1) items 8A, 12A)

s 59-25 — Taxable amounts relating to Commonwealth places windfall tax

Taxable amounts on which tax is imposed by the Commonwealth Places Windfall Tax (Imposition) Act 1998 are not assessable income and are not * exempt income.

Amendment history: Inserted by No 66 of 2003, effective s 4, Sch 2 (items 1–5, 17), Sch 3 (items 49–70, 71–128, 129–131, 140, 141), Sch 4, Sch 6 (items 1, 3) and Sch 7 (items 6–9): 30 June 2003 (s 2(1) items 1, 3, 6–8, 8B–12, 12B, 14, 15, 17, 18) Sch 3 (items 70A, 128A): 2 Apr 2003 (s 2(1) items 8A, 12A)

s 59-30 — Amounts you must repay

(1) An amount you receive is not assessable income and is not * exempt income for an income year if: (a) you must repay it; and (b) you repay it in a later income year; and (c) you cannot deduct the repayment for any income year. (2) It does not matter if: (a) you received the amount as part of a larger amount; or (b) the obligation to repay existed when you received the amount or it came into existence later. (3) This section does not apply to an amount you must repay because you received a lump sum as compensation or damages for a wrong or injury you suffered in your occupation.

Amendment history: Inserted by No 66 of 2003, effective s 4, Sch 2 (items 1–5, 17), Sch 3 (items 49–70, 71–128, 129–131, 140, 141), Sch 4, Sch 6 (items 1, 3) and Sch 7 (items 6–9): 30 June 2003 (s 2(1) items 1, 3, 6–8, 8B–12, 12B, 14, 15, 17, 18) Sch 3 (items 70A, 128A): 2 Apr 2003 (s 2(1) items 8A, 12A)

s 59-35 — Amounts that would be mutual receipts but for prohibition on distributions to members or issue of MCIs

An amount of * ordinary income of an entity is not assessable income and not * exempt income if: (a) the amount would be a mutual receipt, but for: (i) the entity’s constituent document preventing the entity from making any * distribution, whether in money, property or otherwise, to its members; or (ii) the entity’s constituent document providing for the entity to issue MCIs (within the meaning of the Corporations Act 2001 ) or to pay * dividends in respect of MCIs; or (iii) the entity having issued one or more MCIs (within the meaning of the Corporations Act 2001 ) or having paid dividends in respect of one or more MCIs; and (b) apart from this section, the amount would be assessable income only because of section 6 ‑ 5.

Amendment history: Inserted by No 13 of 2006, effective 29 Mar 2006 | Amended by No 37 of 2019, effective Sch 2 (items 17–22): 6 Apr 2019 (s 2(1) item 1)

s 59-40 — Issue of rights

(1) The * market value, as at the time of issue (the issue time ), of rights issued to you: (a) by a company to * acquire * shares in that company; or (b) by a trustee of a unit trust to acquire units in that trust; is not assessable income and is not * exempt income as at the issue time if the conditions in subsection (2) are satisfied. (2) The conditions are as follows: (a) at the issue time, you must already own * shares in the company or units in the unit trust (the original interests ); (b) the rights must be issued to you because of your ownership of the original interests; (c) the original interests and the rights must not be * revenue assets or * trading stock at the issue time; (d) if you acquired a beneficial interest in the rights under an * employee share scheme—neither Subdivision 83A ‑ B nor 83A ‑ C (about employee share schemes) applies to the beneficial interest; (e) the original interests and the rights must not be * traditional securities; (f) the original interests must not be * convertible interests.

Amendment history: Inserted by No 91 of 2008, effective Schedule 1: Royal Assent | Amended by No 133 of 2009, effective Schedule 1 (items 1, 21–76, 86, 87): 14 Dec 2009 Schedule 2 (items 1–13, 15) and Schedule 3 (items 28–40, 44, 45): Royal Assent

s 59-50 — Native title benefits

(1) To the extent that a * native title benefit would otherwise be included in your assessable income, it is not assessable income and is not * exempt income if you are an * Indigenous person or an * Indigenous holding entity. (2) To the extent that an amount, or other benefit, arising directly or indirectly from a * native title benefit would otherwise be included in your assessable income, it is not assessable income and is not * exempt income if you are an * Indigenous person or an * Indigenous holding entity. (3) Neither subsection (1) nor (2) applies to an amount, or benefit, to the extent that it: (a) is for the purposes of meeting the provider’s administrative costs; or (b) is remuneration or consideration for the provision of goods or services. (4) Subsection (2) does not apply to an amount, or benefit, to the extent that it arises directly or indirectly: (a) from so much of: (i) the * native title benefit; or (ii) an amount, or benefit, arising directly or indirectly from the native title benefit; as is not * non ‑ assessable non ‑ exempt income of an entity because of this section; or (b) from an entity investing any or all of: (i) the native title benefit; or (ii) an amount, or benefit, arising directly or indirectly from the native title benefit. (5) A native title benefit is an amount, or * non ‑ cash benefit, that: (a) arises under: (i) an agreement made under an Act of the Commonwealth, a State or a Territory, or under an instrument made under such an Act; or (ii) an ancillary agreement to such an agreement; to the extent that the amount or benefit relates to an act that would extinguish * native title or that would otherwise be wholly or partly inconsistent with the continued existence, enjoyment or exercise of native title; or (b) is compensation determined in accordance with Division 5 of Part 2 of the Native Title Act 1993 . Note 1: Agreements that can be covered by paragraph (a) include: (a) indigenous land use agreements (within the meaning of the Native Title Act 1993 ); and (b) an agreement of the kind mentioned in paragraph 31(1)(b) of that Act; and (c) recognition and settlement agreements (within the meaning of the Traditional Owner Settlement Act 2010 (Vic.)). Note 2: Paragraph (a) does not require a determination of native title under the Native Title Act 1993 . (6) An Indigenous holding entity is: (a) a * distributing body; or (b) a trust, if the beneficiaries of the trust can only be * Indigenous persons or Indigenous holding entities; or (c) a * registered charity.

Amendment history: Inserted by No 42 of 2009, effective Schedule 1 (items 17–26), Schedule 2 (items 2–16, 19–39, 41–48), Schedule 4 (items 2–12), Schedule 5 (items 1–12, 15) and Schedule 8 (items 1, 2, 5): Royal Assent Sch 2 (item 1): 21 June 2007 (s 2(1) item 3) Schedule 3: 1 July 2009 Schedule 8 (items 3, 4): 1 July 2011 | Repealed by No 42 of 2009, effective Schedule 1 (items 17–26), Schedule 2 (items 2–16, 19–39, 41–48), Schedule 4 (items 2–12), Schedule 5 (items 1–12, 15) and Schedule 8 (items 1, 2, 5): Royal Assent Sch 2 (item 1): 21 June 2007 (s 2(1) item 3) Schedule 3: 1 July 2009 Schedule 8 (items 3, 4): 1 July 2011 | Inserted by No 84 of 2013, effective s 4, Sch 1 (items 2–9, 19–23), Sch 2, Sch 3, Sch 6 and Sch 8 (items 27–32): 28 June 2013 (s 2(1) items 1, 2, 4) | Amended by No 124 of 2013, effective Sch 1 (items 37–45), Sch 5 (items 7, 8(1)), Sch 7, Sch 8, Sch 10 (items 1–11, 13): 29 June 2013 (s 2(1) items 2, 10–12) Sch 2 (items 2–6, 21–42, 48): 11 July 2013 (s 2(1) item 3) Sch 2 (item 66): 11 July 2013 (s 2(1) item 5) Sch 10 (item 14): never commenced (s 2(1) item 13) Sch 11 (items 1–3): 3 Dec 2012 (s 2(1) item 15) Sch 11 (items 5, 6, 9): 28 June 2013 (s 2(1) item 16) Sch 11 (items 28, 32(1), 35–56): 30 June 2013 (s 2(1) items 18, 20, 22)

s 59-55 — 2019 ‑ 20 bushfires—payments for volunteer work with fire services

(1) A payment to an individual is not assessable income and is not * exempt income if: (a) the purpose of the payment is to compensate the individual for the loss of income as a result of the individual performing volunteer work with a fire service (however described) of a State or Territory; and (b) the work is performed during the 2019 ‑ 20 income year; and (c) the payment is made by a State or Territory and is covered by an agreement between the Commonwealth and that State or Territory; and (d) the payment is made on or after 1 January 2020. (2) However, this section does not apply to: (a) a payment received in the individual’s capacity as an employee or contractor (including a payment of an entitlement to paid leave); or (b) a workers’ compensation payment.

Amendment history: Inserted by No 31 of 2011, effective Schedule 1 (items 1, 2) and Schedule 2 (items 1, 2): 25 May 2011 (s 2(1) items 2, 4) Schedule 1 (item 4) and Schedule 2 (items 4, 5): 1 July 2014 (s 2(1) items 3, 5) Schedule 3 (items 32–36): 26 May 2011 (s 2(1) item 6) | Repealed by No 31 of 2011, effective Schedule 1 (items 1, 2) and Schedule 2 (items 1, 2): 25 May 2011 (s 2(1) items 2, 4) Schedule 1 (item 4) and Schedule 2 (items 4, 5): 1 July 2014 (s 2(1) items 3, 5) Schedule 3 (items 32–36): 26 May 2011 (s 2(1) item 6) | Inserted by No 1 of 2020, effective 14 Feb 2020 (s 2(1) item 1)

s 59-60 — 2019 ‑ 20 bushfires—disaster relief payments and non ‑ cash benefits

(1) A payment made to an entity, or a * non ‑ cash benefit provided to an entity, to the extent it would otherwise be assessable income of the entity, is not assessable income and is not * exempt income if: (a) the payment has been made or the benefit provided directly as a result of the bushfires commencing in Australia in the 2019 ‑ 20 financial year; and (b) the purpose of the payment or benefit is to provide the entity with relief from, or assist the entity in recovering from, the effects of the bushfires; and (c) the payment is made, or the benefit is provided, by: (i) the Commonwealth; or (ii) a State or Territory; or (iii) a municipal corporation; or (iv) a * local governing body. Note: Payments covered by this subsection would include Disaster Recovery Allowance paid under the Social Security Act 1991 and payments made under disaster recovery funding arrangements made by or on behalf of the Commonwealth. (2) A payment made to an entity, or a * non ‑ cash benefit provided to an entity, to the extent it would otherwise be assessable income of the entity, is also not assessable income and is not * exempt income if: (a) the payment or benefit relates to the bushfires commencing in Australia in the 2019 ‑ 20 financial year; and (b) the payment or benefit is of a kind prescribed by the regulations for the purposes of this subsection. (3) However, this section does not apply to: (a) a payment or benefit received in an individual’s capacity as an employee or contractor (including a payment of an entitlement to paid leave); or (b) a workers’ compensation payment; or (c) a payment of compensation or damages made to an entity as a result of an order of a court or tribunal or settlement of a claim.

Amendment history: Inserted by No 31 of 2011, effective Schedule 1 (items 1, 2) and Schedule 2 (items 1, 2): 25 May 2011 (s 2(1) items 2, 4) Schedule 1 (item 4) and Schedule 2 (items 4, 5): 1 July 2014 (s 2(1) items 3, 5) Schedule 3 (items 32–36): 26 May 2011 (s 2(1) item 6) | Repealed by No 31 of 2011, effective Schedule 1 (items 1, 2) and Schedule 2 (items 1, 2): 25 May 2011 (s 2(1) items 2, 4) Schedule 1 (item 4) and Schedule 2 (items 4, 5): 1 July 2014 (s 2(1) items 3, 5) Schedule 3 (items 32–36): 26 May 2011 (s 2(1) item 6) | Inserted by No 1 of 2020, effective 14 Feb 2020 (s 2(1) item 1)

s 59-65 — Water infrastructure improvement payments

(1) A * SRWUIP payment, in respect of a * SRWUIP program, to an entity that is a participant in the program is not assessable income and is not * exempt income if: (a) the entity has made a choice under subsection (2) for the program; and (b) if the payment is an * indirect SRWUIP payment—the entity * derives the payment because it owns an asset (otherwise than under a * financial arrangement) to which the program relates. Note: One of the requirements for a SRWUIP payment is for the SRWUIP program to be on the published list of SRWUIP programs for the day the payment is made (see subsection 59 ‑ 67(5)). (2) An entity may make a choice for a * SRWUIP program under this subsection if, in an income year: (a) the entity * derives a * SRWUIP payment in respect of the program but has not , in an earlier income year: (i) derived a SRWUIP payment in respect of the program; or (ii) incurred * SRWUIP expenditure in respect of the program; or (b) the entity incurs SRWUIP expenditure in respect of the program but has not , in an earlier income year: (i) derived a SRWUIP payment in respect of the program; or (ii) incurred SRWUIP expenditure in respect of the program. Disregard subsection 26 ‑ 100(3) (about expenditure that is never SRWUIP expenditure) for the purposes of this subsection. (3) The choice must be: (a) made in the * approved form; and (b) made: (i) unless subparagraph (ii) or (iii) applies—on or before the day the entity lodges its * income tax return for the income year; or (ii) if the Commissioner makes an assessment of the entity’s taxable income for the income year before the entity lodges its income tax return for the income year, and subparagraph (iii) does not apply—on or before the day the Commissioner makes that assessment; or (iii) within such further time as the Commissioner allows. The choice cannot be revoked. Integrity rule (4) Subsection (1) does not apply if, at the time the entity * derives the * SRWUIP payment in respect of a * SRWUIP program, it is reasonable to conclude that: (a) the entity will not incur expenditure at least equal to the payment on works required by the program; and (b) despite not incurring such expenditure, the entity will comply with the program because an * associate of the entity will incur expenditure on those works; and (c) the associate has not made, and will not make, a choice under subsection (2) for the program.

Amendment history: Inserted by No 88 of 2013, effective s 4, Sch 1 (items 1–18), Sch 3 and Sch 7 (items 200–210, 236–242): 28 June 2013 (s 2(1) items 1, 2, 5, 21, 26) Sch 1 (items 33, 34): 1 July 2013 (s 2(1) item 3) Sch 5 (items 1–5, 7–9) and Sch 6 (items 3–41, 50–65): 29 June 2013 (s 2(1) items 8, 9, 14) Sch 7 (items 1–4): 1 July 2012 (s 2(1) item 15)

s 59-67 — Meaning of SRWUIP program , SRWUIP payment , direct SRWUIP payment and indirect SRWUIP payment

(1) A SRWUIP program is a program under the program administered by the Commonwealth known as the Sustainable Rural Water Use and Infrastructure program. (2) A SRWUIP payment , in respect of a * SRWUIP program, is: (a) a * direct SRWUIP payment in respect of the program; or (b) an * indirect SRWUIP payment in respect of the program. (3) A direct SRWUIP payment is a payment by the Commonwealth to a participant in a * SRWUIP program to the extent that it is made under that program. (4) An indirect SRWUIP payment is a payment to a participant in a * SRWUIP program to the extent that it is reasonably attributable to a payment by the Commonwealth under that program. (5) For the purposes of subsections (3) and (4), treat a payment as being made under a * SRWUIP program only if that SRWUIP program is on the published list of SRWUIP programs (see section 59 ‑ 70) for the day the payment is made. (6) However, treat a payment as if it had never been made under a * SRWUIP program to the extent that the Commonwealth seeks to recover the payment. Example: The Commonwealth seeks to recover half of a payment made under a SRWUIP program. The remaining half is still a payment made under the SRWUIP program.

Amendment history: Inserted by No 88 of 2013, effective s 4, Sch 1 (items 1–18), Sch 3 and Sch 7 (items 200–210, 236–242): 28 June 2013 (s 2(1) items 1, 2, 5, 21, 26) Sch 1 (items 33, 34): 1 July 2013 (s 2(1) item 3) Sch 5 (items 1–5, 7–9) and Sch 6 (items 3–41, 50–65): 29 June 2013 (s 2(1) items 8, 9, 14) Sch 7 (items 1–4): 1 July 2012 (s 2(1) item 15)

s 59-70 — List of SRWUIP programs

(1) The * Water Secretary must keep a list of * SRWUIP programs. The list must: (a) specify the days for which each program is on the list; and (b) be published on the * Water Department’s website. Example: A program could be listed for each day on or after 1 July 2011. Entering SRWUIP programs on the list (2) The * Water Secretary must enter on the list each * SRWUIP program (and its days) in accordance with a direction under subsection (3). (3) The Minister and the * Water Minister may jointly direct the * Water Secretary to enter a program (and its days) on the list only if the Water Minister has notified the Minister in writing that the Water Minister is satisfied that the program: (a) is a * SRWUIP program; and (b) will generate efficiencies in water use through infrastructure improvements. (4) A direction under subsection (3) must be in writing and specify the days for which the * SRWUIP program is to be on the list. Some or all of those days may be before the day the direction is given. Changing the days for which a SRWUIP program is listed (5) The Minister and the * Water Minister may jointly direct the * Water Secretary to change the list to specify: (a) additional days (including days before the day the direction is given) for which a * SRWUIP program is on the list; or (b) the final day (which must be after the day the direction is given) for which a SRWUIP program is on the list. The * Water Secretary must change the list accordingly. (6) A direction under subsection (5) must be in writing. Giving directions (7) The Minister and the * Water Minister must have regard to the policies and budgetary priorities of the Commonwealth Government in deciding whether to give a direction under subsection (3) or (5).

Amendment history: Inserted by No 88 of 2013, effective s 4, Sch 1 (items 1–18), Sch 3 and Sch 7 (items 200–210, 236–242): 28 June 2013 (s 2(1) items 1, 2, 5, 21, 26) Sch 1 (items 33, 34): 1 July 2013 (s 2(1) item 3) Sch 5 (items 1–5, 7–9) and Sch 6 (items 3–41, 50–65): 29 June 2013 (s 2(1) items 8, 9, 14) Sch 7 (items 1–4): 1 July 2012 (s 2(1) item 15)

s 59-75 — Commissioner to be kept informed

The * Water Secretary must notify the Commissioner about each payment described in subsection 59 ‑ 67(6) that the Commonwealth seeks to recover.

Amendment history: Inserted by No 88 of 2013, effective s 4, Sch 1 (items 1–18), Sch 3 and Sch 7 (items 200–210, 236–242): 28 June 2013 (s 2(1) items 1, 2, 5, 21, 26) Sch 1 (items 33, 34): 1 July 2013 (s 2(1) item 3) Sch 5 (items 1–5, 7–9) and Sch 6 (items 3–41, 50–65): 29 June 2013 (s 2(1) items 8, 9, 14) Sch 7 (items 1–4): 1 July 2012 (s 2(1) item 15)

s 59-80 — Amending assessments

Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment for the purpose of giving effect to an outcome that is consequential on any or all of the following events: (a) the inclusion of a * SRWUIP program on the published list of SRWUIP programs (see section 59 ‑ 70); (b) the publication of a change to a SRWUIP program’s listing on the published list of SRWUIP programs; (c) the Commonwealth seeking to recover a payment described in subsection 59 ‑ 67(6); (d) the making of a choice under subsection 59 ‑ 65(2); (e) the event that causes subsection 26 ‑ 100(3) to treat expenditure as if it had never been * SRWUIP expenditure; if the amendment is made at any time during the period of 2 years starting immediately after that event. Note: Section 170 of the Income Tax Assessment Act 1936 specifies the usual period within which assessments may be amended.

Amendment history: Inserted by No 88 of 2013, effective s 4, Sch 1 (items 1–18), Sch 3 and Sch 7 (items 200–210, 236–242): 28 June 2013 (s 2(1) items 1, 2, 5, 21, 26) Sch 1 (items 33, 34): 1 July 2013 (s 2(1) item 3) Sch 5 (items 1–5, 7–9) and Sch 6 (items 3–41, 50–65): 29 June 2013 (s 2(1) items 8, 9, 14) Sch 7 (items 1–4): 1 July 2012 (s 2(1) item 15)

s 59-85 — 2019 floods—recovery grants for small businesses, primary producers and non ‑ profit organisations

A payment is not assessable income and is not * exempt income if: (a) for the purposes of the Disaster Recovery Funding Arrangements 2018 (set out in a determination made by the Minister for Law Enforcement and Cyber Security on 5 June 2018), the payment is a recovery grant made to a small business, primary producer or non ‑ profit organisation as part of a Category C or Category D measure; and (b) the payment relates to floods commencing in Australia in the period between 25 January 2019 and 28 February 2019.

Amendment history: Inserted by No 30 of 2019, effective Sch 1 and 2: 1 July 2019 (s 2(1) item 2)

s 59-86 — 2019 floods—on ‑ farm grant program for primary producers

(1) A payment is not assessable income and is not * exempt income if: (a) for the purposes of an agreement covered by subsection (2), the payment is a grant made to a primary producer; and (b) the grant is for replacing or repairing farm infrastructure, restocking, replanting, or a similar purpose. (2) An agreement is covered by this subsection if: (a) the agreement is entered into in the period between 1 February 2019 and 1 July 2019; and (b) the parties to the agreement are the Commonwealth and a State or Territory; and (c) the objective of the agreement is principally to assist primary producers impacted by floods commencing in Australia in the period between 25 January 2019 and 28 February 2019.

Amendment history: Inserted by No 30 of 2019, effective Sch 1 and 2: 1 July 2019 (s 2(1) item 2)

s 59-90 — Cash flow boost

A cash flow boost paid in accordance with the Boosting Cash Flow for Employers (Coronavirus Economic Response Package) Act 2020 is not assessable income and is not * exempt income.

Amendment history: Inserted by No 22 of 2020, effective Sch 1 (items 1–14), Sch 2 (items 1–6) and Sch 4 (items 12–22): 25 Mar 2020 (s 2(1) items 2, 4) Sch 3 (items 1, 2): 24 Mar 2020 (s 2(1) item 3)

s 59-95 — Coronavirus economic response payment

A payment is not assessable income and is not * exempt income if: (a) the payment is paid in accordance with rules made under the Coronavirus Economic Response Package (Payments and Benefits) Act 2020 ; and (b) those rules state that the payment is not assessable income and is not exempt income.

Amendment history: Inserted by No 38 of 2020, effective Sch 2 (items 3–6): 9 Apr 2020 (s 2(1) item 4)

s 59-96 — COVID ‑ 19 disaster payment

A payment an individual receives is not assessable income and is not * exempt income if it is a COVID ‑ 19 disaster payment (within the meaning of the COVID ‑ 19 Disaster Payment (Funding Arrangements) Act 2021 ).

Amendment history: Inserted by No 79 of 2021, effective Sch 3 and Sch 5: 11 Aug 2021 (s 2(1) item 1)

s 59-97 — State and Territory grants to small business relating to the recovery from the coronavirus known as COVID ‑ 19

(1) A payment an entity receives is not assessable income and is not * exempt income if: (a) the entity receives the payment under a grant program administered by: (i) a State or a Territory; or (ii) an authority of a State or a Territory; and (b) the grant program is declared under subsection (3) to be an eligible program (whether this declaration is made before, on or after the day the entity receives the payment); and (c) the entity receives the payment in the 2020 ‑ 21 or 2021 ‑ 22 * financial year; and (d) the entity is a * small business entity, or an entity covered by subsection (2), for the income year in which the entity receives the payment. (2) An entity is covered by this subsection for an income year if: (a) the entity is not a * small business entity for the income year; and (b) the entity would be a small business entity for the income year if: (i) each reference in Subdivision 328 ‑ C (about what is a small business entity) to $10 million were instead a reference to $50 million; and (ii) the reference in paragraph 328 ‑ 110(5)(b) to a small business entity were instead a reference to an entity covered by this subsection. (3) The Minister must, by legislative instrument, declare a grant program to be an eligible program if the Minister is satisfied that: (a) the program was first publicly announced on or after 13 September 2020 by the State, Territory or authority that is administering it; and (b) the program is, in effect, responding to economic impacts of the coronavirus known as COVID ‑ 19; and (c) the program is, in effect, directed at supporting businesses: (i) who are the subject of a public health directive applying to a geographical area in which the businesses operate; and (ii) whose operations have been significantly disrupted as a result of the public health directive; and (d) the State, Territory or authority has requested the program to be declared to be an eligible program under this subsection.

Amendment history: Inserted by No 118 of 2020, effective Sch 1: 12 Dec 2020 (s 2(1) item 2) Sch 2 (items 1–6): 11 Dec 2021 (s 2(1) item 3) Sch 3: 1 Jan 2021 (s 2(1) item 5) | Amended by No 71 of 2021, effective Sch 1: 1 July 2021 (s 2(1) item 1)

s 59-98 — Commonwealth small business support payments relating to the coronavirus known as COVID ‑ 19

(1) A payment an entity receives is not assessable income and is not * exempt income if: (a) the entity receives the payment under a program administered by the Commonwealth or an authority of the Commonwealth; and (b) the program is declared under subsection (2) to be an eligible program (whether this declaration is made before, on or after the day the entity receives the payment); and (c) the entity receives the payment in the 2021 ‑ 22 * financial year; and (d) the entity is a * small business entity, or an entity covered by subsection 59 ‑ 97(2), for the income year in which the entity receives the payment. (2) For the purposes of paragraph (1)(b), the Minister may, by legislative instrument, declare a program to be an eligible program if the Minister is satisfied that the program is, in effect: (a) responding to economic impacts of the coronavirus known as COVID ‑ 19; and (b) directed at supporting * businesses the operations of which have been significantly disrupted as a result of a public health directive.

Amendment history: Inserted by No 79 of 2021, effective Sch 3 and Sch 5: 11 Aug 2021 (s 2(1) item 1)

s 59-99 — 2021 floods and storms—recovery grants

A payment is not assessable income and is not * exempt income if: (a) for the purposes of the Disaster Recovery Funding Arrangements 2018 (set out in a determination made by the Minister for Law Enforcement and Cyber Security on 5 June 2018), the payment is a recovery grant made to a small business or primary producer as part of a Category D measure; and (b) the payment relates to: (i) floods commencing in Australia as a consequence of rainfall events occurring in the period between 19 February 2021 and 31 March 2021; or (ii) storms occurring in Australia in that period.

Amendment history: Inserted by No 61 of 2021, effective Sch 3 (items 1–3), Sch 4 and Sch 5: 1 July 2021 (s 2(1) items 4, 6)

s 59-100 — Refund of large ‑ scale generation shortfall charge

(1) A payment to an entity under section 98 of the Renewable Energy (Electricity) Act 2000 is not assessable income and is not * exempt income. (2) Disregard subsection (1) for the purposes of determining whether an entity can deduct expenditure that it incurs in relation to large ‑ scale generation certificates (within the meaning of the Renewable Energy (Electricity) Act 2000 ).

Amendment history: Inserted by No 111 of 2021, effective Sch 1 and 3: 1 Oct 2021 (s 2(1) items 2, 4)

s 59-105 — Cyclone Seroja—recovery grants

A payment is not assessable income and is not * exempt income if: (a) for the purposes of the Disaster Recovery Funding Arrangements 2018 (set out in a determination made by the Minister for Law Enforcement and Cyber Security on 5 June 2018), the payment is a recovery grant made to a small business or primary producer as part of a Category C measure; and (b) the payment relates to Cyclone Seroja.

Amendment history: Inserted by No 35 of 2022, effective sch 1 (items 1-3), sch 3 (items 2, 3): 1 Oct 2022 (s 2(1) items 2, 4)

s 59-110 — Payment to victim following perpetrator contributions release order

A payment made by the Commissioner of an amount mentioned in subsection 139 ‑ 160(1) in Schedule 1 to the Taxation Administration Act 1953 is not assessable income and is not * exempt income.

Amendment history: Inserted by No 47 of 2026, effective sch 1 (items 6-11): 21 May 2026 (s 2(1) item 1)

s 61-1 — What this Subdivision is about

You are entitled to a tax offset for an income year if you maintain certain dependants who are unable to work. Table of sections Object of this Subdivision 61 ‑ 5 Object of this Subdivision Entitlement to the dependant (invalid and carer) tax offset 61 ‑ 10 Who is entitled to the tax offset 61 ‑ 15 Cases involving more than one spouse 61 ‑ 20 Exceeding the income limit for family tax benefit (Part B) 61 ‑ 25 Eligibility for family tax benefit (Part B) without shared care Amount of the dependant (invalid and carer) tax offset 61 ‑ 30 Amount of the dependant (invalid and carer) tax offset 61 ‑ 35 Families with shared care percentages 61 ‑ 40 Reduced amounts of dependant (invalid and carer) tax offset 61 ‑ 45 Reductions to take account of the other individual’s income

Amendment history: Inserted by No 85 of 2013, effective s 4, Sch 1, Sch 2 (items 1–3), Sch 4 (items 1–11) and Sch 7 (items 1, 7–10): 28 June 2013 (s 2(1) items 1–3, 7, 10) Sch 2 (item 6): 1 July 2016 (s 2(1) item 4) Sch 2 (items 7–9): 1 July 2017 (s 2(1) item 5) Sch 4 (items 12, 13): 1 July 2022 (s 2(1) item 8) Sch 4 (items 14, 15): 1 July 2023 (s 2(1) item 9) Sch 8 (items 1–48, 55–64): 26 Mar 2009 (s 2(1) item 11)

s 61-5 — Object of this Subdivision

The object of this Subdivision is to provide a * tax offset to assist with the maintenance of certain types of dependants who are genuinely unable to work because of invalidity, or because of their care obligations.

Amendment history: Inserted by No 85 of 2013, effective s 4, Sch 1, Sch 2 (items 1–3), Sch 4 (items 1–11) and Sch 7 (items 1, 7–10): 28 June 2013 (s 2(1) items 1–3, 7, 10) Sch 2 (item 6): 1 July 2016 (s 2(1) item 4) Sch 2 (items 7–9): 1 July 2017 (s 2(1) item 5) Sch 4 (items 12, 13): 1 July 2022 (s 2(1) item 8) Sch 4 (items 14, 15): 1 July 2023 (s 2(1) item 9) Sch 8 (items 1–48, 55–64): 26 Mar 2009 (s 2(1) item 11)

s 61-10 — Who is entitled to the tax offset

(1) You are entitled to a * tax offset for an income year if: (a) during the year you contribute to the maintenance of another individual who: (i) is your * spouse; or (ii) is your * parent or your spouse’s parent; or (iii) is aged 16 years or over, and is your * child, brother or sister or a brother or sister of your spouse; and (b) during the year, the other individual meets the requirements of one or more of subsections (2), (3) and (4); and (c) during the year: (i) the other individual is an Australian resident; or (ii) if the other individual is your spouse or your child—you had a domicile in Australia. (2) The other individual meets the requirements of this subsection if he or she is being paid: (a) a disability support pension or a special needs disability support pension under the Social Security Act 1991 ; or (b) an invalidity service pension under the Veterans’ Entitlements Act 1986 . (3) The other individual meets the requirements of this subsection if he or she: (a) is your * spouse or parent, or your spouse’s parent; and (b) is being paid a carer allowance or carer payment under the Social Security Act 1991 in relation to provision of care to a person who: (i) is your * child, brother or sister, or the brother or sister of your spouse; and (ii) is aged 16 years or over. (4) The other individual meets the requirements of this subsection if he or she is your * spouse or parent, or your spouse’s parent, and is wholly engaged in providing care to an individual who: (a) is your * child, brother or sister, or the brother or sister of your spouse; and (b) is aged 16 years or over; and (c) is being paid: (i) a disability support pension or a special needs disability support pension under the Social Security Act 1991 ; or (ii) an invalidity service pension under the Veterans’ Entitlements Act 1986 . (5) You may be entitled to more than one * tax offset for the year under subsection (1) if: (a) you contributed to the maintenance of more than one other individual (none of whom are your * spouse) during the year; or (b) you had different * spouses at different times during the year. Note 1: If paragraph (b) applies, the amount of the tax offset in relation to each spouse would be only part of the full amount: see section 61 ‑ 40. Note 2: Section 960 ‑ 255 may be relevant to determining relationships for the purposes of this section.

Amendment history: Inserted by No 85 of 2013, effective s 4, Sch 1, Sch 2 (items 1–3), Sch 4 (items 1–11) and Sch 7 (items 1, 7–10): 28 June 2013 (s 2(1) items 1–3, 7, 10) Sch 2 (item 6): 1 July 2016 (s 2(1) item 4) Sch 2 (items 7–9): 1 July 2017 (s 2(1) item 5) Sch 4 (items 12, 13): 1 July 2022 (s 2(1) item 8) Sch 4 (items 14, 15): 1 July 2023 (s 2(1) item 9) Sch 8 (items 1–48, 55–64): 26 Mar 2009 (s 2(1) item 11) | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 61-15 — Cases involving more than one spouse

(1) Despite paragraph 61 ‑ 10(1)(a), if, during a period comprising some or all of the year, there are 2 or more individuals who are your * spouse, you are taken, for the purposes of section 61 ‑ 10, only to contribute to the maintenance of the spouse with whom you reside during that period. (2) Despite paragraph 61 ‑ 10(1)(a) and subsection (1) of this section, if, during a period comprising some or all of the year: (a) you reside with 2 or more individuals who are your * spouse; or (b) 2 or more individuals are your * spouse but you reside with none of them; you are taken, for the purposes of section 61 ‑ 10, only to contribute to the maintenance of whichever of those individuals in relation to whom you are entitled to the smaller, or smallest, amount (including a nil amount) of tax offset under this Subdivision in relation to that period.

Amendment history: Inserted by No 85 of 2013, effective s 4, Sch 1, Sch 2 (items 1–3), Sch 4 (items 1–11) and Sch 7 (items 1, 7–10): 28 June 2013 (s 2(1) items 1–3, 7, 10) Sch 2 (item 6): 1 July 2016 (s 2(1) item 4) Sch 2 (items 7–9): 1 July 2017 (s 2(1) item 5) Sch 4 (items 12, 13): 1 July 2022 (s 2(1) item 8) Sch 4 (items 14, 15): 1 July 2023 (s 2(1) item 9) Sch 8 (items 1–48, 55–64): 26 Mar 2009 (s 2(1) item 11) | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 61-20 — Exceeding the income limit for family tax benefit (Part B)

(1) Despite section 61 ‑ 10, you are not entitled to a * tax offset for an income year if the sum of: (a) your * adjusted taxable income for offsets for the year; and (b) if you had a * spouse for the whole or part of the year, and your spouse was not the other individual referred to in subsection 61 ‑ 10(1)—the spouse’s adjusted taxable income for offsets for the year; is more than the amount specified in subclause 28B(1) of Schedule 1 to the A New Tax System (Family Assistance) Act 1999 , as indexed under Part 2 of Schedule 4 to that Act. (2) However, if you had a * spouse for only part of the year, the spouse’s * adjusted taxable income for offsets for the year is taken, for the purposes of paragraph (1)(b), to be this amount: (3) If you had a different * spouse during different parts of the year, include the * adjusted taxable income for offsets of each spouse under paragraph (1)(b) and subsection (2).

Amendment history: Inserted by No 85 of 2013, effective s 4, Sch 1, Sch 2 (items 1–3), Sch 4 (items 1–11) and Sch 7 (items 1, 7–10): 28 June 2013 (s 2(1) items 1–3, 7, 10) Sch 2 (item 6): 1 July 2016 (s 2(1) item 4) Sch 2 (items 7–9): 1 July 2017 (s 2(1) item 5) Sch 4 (items 12, 13): 1 July 2022 (s 2(1) item 8) Sch 4 (items 14, 15): 1 July 2023 (s 2(1) item 9) Sch 8 (items 1–48, 55–64): 26 Mar 2009 (s 2(1) item 11)

s 61-25 — Eligibility for family tax benefit (Part B) without shared care

Despite section 61 ‑ 10, you are not entitled to a * tax offset in relation to another individual for an income year if: (a) your entitlement to the tax offset would, apart from this section, be based on the other individual being your spouse during the year; and (b) during the whole of the year: (i) you, or your * spouse while being your partner (within the meaning of the A New Tax System (Family Assistance) Act 1999 ), is eligible for family tax benefit at the Part B rate (within the meaning of that Act); and (ii) clause 31 of Schedule 1 to that Act does not apply in respect of the Part B rate. Note: Clause 31 of Schedule 1 to the A New Tax System (Family Assistance) Act 1999 reduces the standard rate for the family tax benefit to take account of shared care percentages.

Amendment history: Inserted by No 85 of 2013, effective s 4, Sch 1, Sch 2 (items 1–3), Sch 4 (items 1–11) and Sch 7 (items 1, 7–10): 28 June 2013 (s 2(1) items 1–3, 7, 10) Sch 2 (item 6): 1 July 2016 (s 2(1) item 4) Sch 2 (items 7–9): 1 July 2017 (s 2(1) item 5) Sch 4 (items 12, 13): 1 July 2022 (s 2(1) item 8) Sch 4 (items 14, 15): 1 July 2023 (s 2(1) item 9) Sch 8 (items 1–48, 55–64): 26 Mar 2009 (s 2(1) item 11) | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 61-30 — Amount of the dependant (invalid and carer) tax offset

The amount of the * tax offset to which you are entitled in relation to another individual under section 61 ‑ 10 for an income year is $2,423. The amount is indexed annually. Note 1: Subdivision 960 ‑ M shows you how to index amounts. Note 2: The amount of the tax offset may be reduced by the application, in order, of sections 61 ‑ 35 to 61 ‑ 45.

Amendment history: Inserted by No 85 of 2013, effective s 4, Sch 1, Sch 2 (items 1–3), Sch 4 (items 1–11) and Sch 7 (items 1, 7–10): 28 June 2013 (s 2(1) items 1–3, 7, 10) Sch 2 (item 6): 1 July 2016 (s 2(1) item 4) Sch 2 (items 7–9): 1 July 2017 (s 2(1) item 5) Sch 4 (items 12, 13): 1 July 2022 (s 2(1) item 8) Sch 4 (items 14, 15): 1 July 2023 (s 2(1) item 9) Sch 8 (items 1–48, 55–64): 26 Mar 2009 (s 2(1) item 11)

s 61-35 — Families with shared care percentages

(1) The amount of the * tax offset under section 61 ‑ 30 in relation to the other individual for the year is reduced by the amount worked out under subsection (2) of this section if: (a) your entitlement to the tax offset is based on the other individual being your spouse during the year; and (b) during a period (the shared care period ) comprising the whole or part of the year: (i) you, or your * spouse while being your partner (within the meaning of the A New Tax System (Family Assistance) Act 1999 ), was eligible for family tax benefit at the Part B rate within the meaning of that Act; and (ii) clause 31 of Schedule 1 to that Act applied in respect of that Part B rate because you, or your spouse, had a shared care percentage for an FTB child (within the meaning of that Act). (2) The reduction is worked out as follows: where: non ‑ shared care rate is the rate that would be the standard rate in relation to you or your * spouse under clause 30 of Schedule 1 to the A New Tax System (Family Assistance) Act 1999 if: (a) clause 31 of that Schedule did not apply; and (b) the FTB child in relation to whom the standard rate was determined under clause 31 of that Schedule was the only FTB child of you or your spouse, as the case requires. shared care rate is the standard rate in relation to you or your * spouse worked out under clause 31 of Schedule 1 to the A New Tax System (Family Assistance) Act 1999 . unaltered offset amount is what would, but for this section, be the amount of your * tax offset in relation to the other individual under section 61 ‑ 10 for the year.

Amendment history: Inserted by No 85 of 2013, effective s 4, Sch 1, Sch 2 (items 1–3), Sch 4 (items 1–11) and Sch 7 (items 1, 7–10): 28 June 2013 (s 2(1) items 1–3, 7, 10) Sch 2 (item 6): 1 July 2016 (s 2(1) item 4) Sch 2 (items 7–9): 1 July 2017 (s 2(1) item 5) Sch 4 (items 12, 13): 1 July 2022 (s 2(1) item 8) Sch 4 (items 14, 15): 1 July 2023 (s 2(1) item 9) Sch 8 (items 1–48, 55–64): 26 Mar 2009 (s 2(1) item 11)

s 61-40 — Reduced amounts of dependant (invalid and carer) tax offset

(1) The amount of the * tax offset under sections 61 ‑ 30 and 61 ‑ 35 in relation to the other individual for the year is reduced by the amount in accordance with subsection (2) of this section if one or more of the following applies: (a) you contribute to the maintenance of the other individual during part only of the year; (b) during the whole or part of the year, 2 or more individuals contribute to the maintenance of the other individual; (c) the other individual is an individual of a kind referred to in subparagraph 61 ‑ 10(1)(a)(i), (ii) or (iii) during part only of the year; (d) paragraph 61 ‑ 10(1)(b) applies to the other individual during part only of the year; (e) paragraph 61 ‑ 10(1)(c) applies during part only of the year; (f) the other individual is your spouse, and, during part of the year: (i) you, or your * spouse while being your partner (within the meaning of the A New Tax System (Family Assistance) Act 1999 ), is eligible for family tax benefit at the Part B rate (within the meaning of that Act); and (ii) clause 31 of Schedule 1 to that Act does not apply in respect of the Part B rate; (g) the other individual is your spouse, and, during part of the year, parental leave pay is payable under the Paid Parental Leave Act 2010 to you, or to your spouse while being your partner (within the meaning of that Act). (2) The amount of the tax offset under sections 61 ‑ 30 and 61 ‑ 35 is reduced to an amount that, in the Commissioner’s opinion, is a reasonable apportionment in the circumstances, having regard to the applicable matters referred to in paragraphs (1)(a) to (g). (3) If paragraph (1)(f) or (g) applies, the Commissioner is not to consider the part of the year covered by that paragraph.

Amendment history: Inserted by No 85 of 2013, effective s 4, Sch 1, Sch 2 (items 1–3), Sch 4 (items 1–11) and Sch 7 (items 1, 7–10): 28 June 2013 (s 2(1) items 1–3, 7, 10) Sch 2 (item 6): 1 July 2016 (s 2(1) item 4) Sch 2 (items 7–9): 1 July 2017 (s 2(1) item 5) Sch 4 (items 12, 13): 1 July 2022 (s 2(1) item 8) Sch 4 (items 14, 15): 1 July 2023 (s 2(1) item 9) Sch 8 (items 1–48, 55–64): 26 Mar 2009 (s 2(1) item 11) | Amended by No 70 of 2015, effective Sch 1 (items 65–108, 188–192, 195–205): 1 July 2015 (s 2(1) items 3, 4, 6) Sch 2 (items 17, 24–29, 34–39), Sch 6 (items 13–30, 32–38) and Sch 7 (items 1, 5–11): 25 June 2015 (s 2(1) items 7, 11, 13, 20) Sch 4 (items 1, 2) and Sch 5 (item 1): 26 June 2015 (s 2(1) items 7A, 8) Sch 4 (items 3, 4): 1 July 2025 (s 2(1) item 7B) Sch 6 (item 31): 29 June 2013 (s 2(1) item 12) The commencement date for amendments made by the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015 Sch 4 (items 1, 2) was retrospectively changed from 25 June 2015 to 26 June 2015

s 61-45 — Reductions to take account of the other individual’s income

The amount of the * tax offset under sections 61 ‑ 30 to 61 ‑ 40 in relation to the other individual for the year is reduced by $1 for every $4 by which the following exceeds $282: (a) if you contribute to the maintenance of the other individual for the whole of the year—the other individual’s * adjusted taxable income for offsets for the year; (b) if paragraph (a) does not apply—the other individual’s * adjusted taxable income for offsets for that part of the year during which you contribute to the maintenance of the other individual.

Amendment history: Inserted by No 85 of 2013, effective s 4, Sch 1, Sch 2 (items 1–3), Sch 4 (items 1–11) and Sch 7 (items 1, 7–10): 28 June 2013 (s 2(1) items 1–3, 7, 10) Sch 2 (item 6): 1 July 2016 (s 2(1) item 4) Sch 2 (items 7–9): 1 July 2017 (s 2(1) item 5) Sch 4 (items 12, 13): 1 July 2022 (s 2(1) item 8) Sch 4 (items 14, 15): 1 July 2023 (s 2(1) item 9) Sch 8 (items 1–48, 55–64): 26 Mar 2009 (s 2(1) item 11)

s 61-100 — What this Subdivision is about

You may be entitled to a tax offset if you: (a) are a lower ‑ income earner; or (b) are the trustee of a trust who is liable to be assessed in respect of a share of the trust’s net income to which a beneficiary is presently entitled. Table of sections Operative provisions 61 ‑ 110 Entitlement to the Low Income tax offset 61 ‑ 115 Amount of the Low Income tax offset

Amendment history: Inserted by No 47 of 2018, effective Sch 1 (items 1, 6, 7): 1 July 2018 (s 2(1) item 2) Sch 1 (items 11–15, 19, 20): repealed before commencing (s 2(1) item 3)

s 61-110 — Entitlement to the Low Income tax offset

(1) You are entitled to a * tax offset for the 2020 ‑ 21 income year or a later income year if: (a) you are an individual who is an Australian resident at any time during the income year; and (b) your taxable income for the income year does not exceed $66,667. (2) You are entitled to a * tax offset for the 2020 ‑ 21 income year or a later income year if: (a) for the income year, you are a trustee who is liable to be assessed under section 98 of the Income Tax Assessment Act 1936 in respect of a share of the * net income of a trust; and (b) the beneficiary who is presently entitled to that share is an individual who is an Australian resident at any time during the income year; and (c) that share does not exceed $66,667. (3) If you are entitled to a * tax offset under subsection (2), you are entitled to a separate tax offset for each beneficiary who is presently entitled to a share for which subsection (2) is satisfied.

Amendment history: Inserted by No 47 of 2018, effective Sch 1 (items 1, 6, 7): 1 July 2018 (s 2(1) item 2) Sch 1 (items 11–15, 19, 20): repealed before commencing (s 2(1) item 3) | Amended by No 92 of 2020, effective Sch 1 (items 18–21, 24): 15 Oct 2020 (s 2(1) item 4) Sch 1 (items 25–27): 1 July 2022 (s 2(1) item 5) Sch 2 (items 1–3, 16–35), Sch 3 (items 25–36, 40), Sch 4 (items 1–11, 14), Sch 5 (items 11–38, 56) and Sch 7 (items 5–8, 12–25): 1 Jan 2021 (s 2(1) item 7)

s 61-115 — Amount of the Low Income tax offset

General rule (1) The amount of your * tax offset is set out in the following table in respect of the following income (your relevant income ): (a) if you are an individual—your taxable income for the income year; (b) if you are a trustee—the amount of the share of * net income referred to in subsection 61 ‑ 110(2). Amount of your tax offset Item If your relevant income: The amount of your tax offset is: 1 does not exceed $37,500 $700 2 exceeds $37,500 but is not more than $45,000 $700, less an amount equal to 5% of the excess 3 exceeds $45,000 but is not more than $66,667 $325, less an amount equal to 1.5% of the excess If you are less than 18 years of age (2) Despite subsection (1), the amount of your * tax offset for the income year cannot exceed a cap if: (a) you are an individual who is a prescribed person in relation to the income year for the purposes of Division 6AA of Part III of the Income Tax Assessment Act 1936 ; and (b) part (the excluded part ) of your basic income tax liability for the income year is attributable to your eligible taxable income (within the meaning of section 102AD of that Act). The cap is an amount equal to the remaining part of your basic income tax liability for the income year. Note: Division 6AA (including section 102AD) is about income that particular kinds of children derive from particular sources. (3) When working out the remaining part of your basic income tax liability, if you are also entitled to a * tax offset under section 160AAA of the Income Tax Assessment Act 1936 , treat that tax offset as having been applied, to the extent possible, against the excluded part of your basic income tax liability. Note: That tax offset is for individuals eligible for certain benefits. If you are a trustee and the beneficiary is less than 18 years of age (4) Despite subsection (1), the amount of your * tax offset for the income year cannot exceed a cap if: (a) you are a trustee; and (b) the beneficiary who is presently entitled to the share of * net income to which the tax offset relates is a prescribed person in relation to the income year for the purposes of Division 6AA of Part III of the Income Tax Assessment Act 1936 ; and (c) part of your basic income tax liability for the income year is attributable to the portion of that share to which that Division applies. The cap is an amount equal to the part of your basic income tax liability attributable to the remaining portion of that share. Note 1: Division 6AA is about income that particular kinds of children derive from particular sources. Note 2: To work out the portion of that share to which Division 6AA applies, see section 102AG of the Income Tax Assessment Act 1936 .

Amendment history: Inserted by No 47 of 2018, effective Sch 1 (items 1, 6, 7): 1 July 2018 (s 2(1) item 2) Sch 1 (items 11–15, 19, 20): repealed before commencing (s 2(1) item 3) | Amended by No 52 of 2019, effective Sch 1: 6 July 2019 (s 2(1) item 1)

s 61-150 — What this Subdivision is about

You may be entitled to a tax offset if you earn certain labour income. Table of sections Operative provisions 61 ‑ 155 Entitlement to the working Australians tax offset 61 ‑ 160 Amount of the working Australians tax offset

Amendment history: Inserted by No 49 of 2026, effective sch 1 (items 1-51, 54-59, 64-79A, 82-84), sch 3, sch 4 (items 1-17): 1 July 2026 (s 2(1) items 2-4, 6) sch 2 (items 1-5): 27 June 2026 (s 2(1) item 5)

s 61-155 — Entitlement to the working Australians tax offset

(1) You are entitled to a * tax offset for an income year if: (a) you are an individual who is an Australian resident at any time during the income year; and (b) in the income year, the amount worked out for you under subsection (2) (about your net labour income) exceeds the tax ‑ free threshold (within the meaning of the Income Tax Rates Act 1986 ). Net labour income (2) Work out the amount for an income year using the formula: where: labour amounts means the sum of the following amounts included in your assessable income for the income year: (a) an amount of * assessable labour income; (b) an amount you * derive from carrying on a * business as an individual (not including assessable income you derive from a business carried on by a partnership or trust); (c) an amount of * personal services income; (d) an amount included in your assessable income under section 83A ‑ 25 (about discounts given in relation to an * ESS interest included in assessable income); (e) an amount that is a payment from which an amount must be withheld (even if the amount is not withheld) under section 12 ‑ 60 in Schedule 1 to the Taxation Administration Act 1953 (about payments under labour hire and certain other arrangements). labour deductions means the sum of the following amounts you can deduct in relation to the income year: (a) an amount of a loss or outgoing that you incurred in gaining or producing an amount mentioned in paragraph (a) or (c) of the definition of labour amounts ; (b) an amount of a loss or outgoing that you necessarily incurred in carrying on a * business as an individual (not including a loss or outgoing necessarily incurred by a business carried on by a partnership or trust); (c) an amount you can deduct under section 25 ‑ 130; (d) an amount you can deduct under section 40 ‑ 25 (other than an amount equal to the decline in value of a * depreciating asset that you allocate to a low ‑ value pool under section 40 ‑ 425), to the extent that the deduction arises for a depreciating asset that you use to: (i) derive an amount mentioned in paragraph (b) of the definition of labour amounts ; or (ii) gain or produce an amount mentioned in paragraph (c) of the definition of labour amounts ; (e) an amount of a deduction mentioned in paragraphs 25 ‑ 130(2)(d) to (g) (standard deduction for work ‑ related expenses); (f) an amount you can deduct under Subdivision 328 ‑ D, to the extent that the deduction arises for a depreciating asset that you use to derive an amount mentioned in paragraph (b) of the definition of labour amounts . (3) If more than one paragraph in the definition of labour amounts or labour deductions covers an amount, include the amount only once.

Amendment history: Inserted by No 49 of 2026, effective sch 1 (items 1-51, 54-59, 64-79A, 82-84), sch 3, sch 4 (items 1-17): 1 July 2026 (s 2(1) items 2-4, 6) sch 2 (items 1-5): 27 June 2026 (s 2(1) item 5)

s 61-160 — Amount of the working Australians tax offset

The amount of your * tax offset for an income year is the lesser of: (a) $250; and (b) the amount that would be the amount of your basic income tax liability for the income year if your taxable income was comprised only of your net labour income worked out under subsection 61 ‑ 155(2) for the income year.

Amendment history: Inserted by No 49 of 2026, effective sch 1 (items 1-51, 54-59, 64-79A, 82-84), sch 3, sch 4 (items 1-17): 1 July 2026 (s 2(1) items 2-4, 6) sch 2 (items 1-5): 27 June 2026 (s 2(1) item 5)