Document ID: chunk:federal_register_of_legislation:C2004C00927:clause:1_3:p3
Version: federal_register_of_legislation:C2004C00927
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 3/11)
Character Range: 343666–346314

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 partner allowance of $250 a fortnight and rental assistance of $75 a fortnight.

 Your partner dies. There are 7 pension paydays during the bereavement lump sum period. You work out the tax-free amount as follows:

 Step 1: The payments that would have become due to you on each of those 7 paydays are $300 + $5 = $305. The total for the 7 paydays is  $2,135.

 Step 2: The exempt component of the $305 you receive on each of the 7 paydays is $5. The total for the 7 paydays is $35.

 Step 3: The payments that would have become due to your partner on each of those 7 paydays are $250 + $75 = $325. The total for the 7 paydays is $2,275.

 Step 4: The tax‑free amount is $35 + $2,275 = $2,310.

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
Mature age allowance (paid under Part 2.12B)
Newstart allowance
Parenting allowance (benefit parenting allowance)
Partner allowance
Sickness allowance
Special benefit

 (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) 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 on each of the pension paydays 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.

52-35  Tax-free amount of a lump sum payment made because of the