Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Subject to subsection (2), where, in respect of the income of any year of income, income tax is payable by the trustee of the estate of a deceased person who has been a member of the Defence Force, the trustee shall, by force of this section, be released from the payment of so much of that tax as remains after deducting any tax deductions unapplied:
(a) where the assessable income of the year of income consists solely of pay and allowances earned as a member of the Defence Force--from the amount of income tax so payable by the trustee; or
(b) where the assessable income of the year of income includes income other than such pay and allowances:
(i) from the amount of income tax so payable by the trustee; or
(ii) from the amount by which the income tax payable in respect of the income of the year of income has been increased by the inclusion of such pay and allowances in the assessable income of that year;
whichever is the less.
(2) Nothing in subsection (1) shall be construed so as to authorize or require the Commissioner to refund any amount paid as or for income tax by or on behalf of the taxpayer or his trustee.
(3) The provisions of subsection (1) do not apply in any case where the death of the taxpayer has occurred in circumstances (including the circumstances of his or her service) in which the Commonwealth would not be liable to pay pensions or compensation:
(a) under Part II or IV of the Veterans' Entitlements Act 1986 to the dependants of deceased members of the Forces or veterans; or
(b) mentioned in paragraph 234(1)(b) of the Military Rehabilitation and Compensation Act 2004 to the wholly dependent partners of deceased members (within the meaning of that Act).
(4) Any decision of an authority constituted under the Repatriation Act 1920 - 1962 on any question affecting the right of any dependants of a deceased member of the Forces to a pension under that Act or under the Repatriation (Far East Strategic Reserve) Act 1956 - 1962 or the Repatriation (Special Overseas Service) Act 1962 , or any decision of an authority constituted under the Veterans' Entitlements Act 1986 on a question affecting the right of a dependant of a deceased veteran to a pension under Part II or IV of that Act, or any decision of the Military Rehabilitation and Compensation Commission established under section 361 of the Military Rehabilitation and Compensation Act 2004 on a question affecting the right of a dependant of a deceased member (within the meaning of that Act) to compensation under Chapter 5 of that Act, in respect of his or her death shall, so long as that decision has not been reversed or overruled, be conclusive evidence of the matters of fact or law so decided for the purposes of the application of subsection (3) in relation to that deceased member of the Forces.
(5) In this section:
"tax deductions unapplied" , in relation to a deceased person, means the total of any amounts withheld under paragraph 12 - 45(1)(c) in Schedule 1 to the Taxation Administration Act 1953 from amounts earned by the deceased person as a member of the Defence Force where:
(a) the amounts have not been credited in payment of income tax; and
(b) the Commissioner has not made a payment in respect of them.