Document ID: chunk:federal_register_of_legislation:C2017C00337:clause:4_10:p2
Version: federal_register_of_legislation:C2017C00337
Segment Type: clause
Provision Reference: sch 4 cl 10 (pt 2/2)
Character Range: 149969–151324

Compensation payments for loss of pay and/or allowances as a Defence reservist
 (1) A compensation payment for the loss of your pay or an allowance is exempt from income tax if:
 (a) the compensation payment is made under the Safety, Rehabilitation and Compensation Act 1988 in respect of an injury (as defined in that Act) you suffered; and
 (b) you suffered your injury while serving as a member of the Naval Reserve, Army Reserve or Air Force Reserve (but not while on continuous full time service); and
 (c) your pay or allowance was payable for service of a kind described in paragraph (b).
 (2) A compensation payment for the loss of your pay or an allowance is exempt from income tax if:
 (a) the compensation payment is made under the Military Rehabilitation and Compensation Act 2004 in respect of a service injury or disease (as defined in that Act); and
 (b) you sustained your service injury or contracted your service disease, or your service injury or disease was aggravated or materially contributed to, while serving as a member of the Naval Reserve, Army Reserve or Air Force Reserve; and
 (c) your pay or allowance was payable for service of a kind described in paragraph (b); and
 (d) the compensation payment is worked out by reference to your normal earnings (as defined in that Act) as a part‑time Reservist (as defined in that Act).