Commonwealth Consolidated Acts Commonwealth Consolidated Acts(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
(ba) clean energy payments under the scheme prepared under Part VII (about educating veterans' children) of the Veterans' Entitlements Act 1986 ; 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
(e) a prisoner of war recognition supplement under Part VIB of 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.
(1F) A prisoner of war recognition supplement under Part VIB of the Veterans' Entitlements Act 1986 is exempt from income tax.
(1G) The following are exempt from income tax:
(a) clean energy payments under the Veterans' Entitlements Act 1986 ;
(b) clean energy payments under the scheme prepared under Part VII (about educating veterans' children) of that Act.
Note: The supplementary amount of each other payment under the scheme mentioned in paragraph (b) is also exempt from income tax (see section 52 - 140).
(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 | |||
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1.1 | Age service pension | Supplementary amount is exempt | 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 | 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 |
5.1 | Decoration 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 | 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 | Exempt |
7.2 | Invalidity service pension : you are under pension age | Exempt | Exempt |
8.1 | Loss of earnings allowance | Exempt | Not applicable |
9.1 | Supplementary amount is exempt | 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 |
15.1 | Section 99 funeral benefit | Not applicable | Exempt |
16.1 | Section 100 funeral benefit | 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 |
20.1 | Travelling expenses | Exempt | Not applicable |
21.1 | Vehicle Assistance Scheme | Exempt | Not applicable |
21AA.1 | Veteran payment | Supplementary amount is exempt | Exempt |
21A.1 | Veterans supplement | Exempt | Not applicable |
22.1 | Victoria Cross allowance | Exempt | Not applicable |