Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_3:p4
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 4/11)
Character Range: 346092–350610

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.

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 severely handicapped person you are caring for.

 (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 on pension paydays that occur 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 on each of the pension paydays during the bereavement lump sum period if:

                (a) the severely handicapped person had not died; and
                (b) the severely handicapped person 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 severely handicapped person on each of the pension paydays during the bereavement lump sum period if the severely handicapped person 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.

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
                                                                                                                                              Payment made because of a person's death (unless covered by next column)
                                                                                                                                                                                                                        Lump sum payment made because of your partner's death
                                                          Category of social security payment
                                                                                                                 Ordinary payment
Item
  1                                                       Advance pharmaceutical supplement                      Part 2.23                    Not applicable                                                            Not applicable
  2                                                       Age pension                                            Part 2.2                     Sections 83, 86 and 91                                                    Section 84
  3                                                       Bereavement allowance                                  Part 2.7                     Section 359                                                               Not applicable
  4                                                       Carer pension                                          Part 2.5                     Sections 238, 241 and 246                                                 Sections 236A and 239
  5                                                       Child disability allowance                             Part 2.19                    Sections 992 and 992A                                                     Not applicable
  6                                                       Disability support pension                             Part 2.3                     Sections 146G, 146K and 146Q                                              Section 146H
  7                                                       Disability wage supplement                             Part 2.9                     Sections 470, 473, 475 and 476                                            Section 471
  8                                                       Disaster relief payment                                Part 2.24                    Not applicable                                                            Not applicable
  9