Commonwealth Consolidated Acts

TAXATION LAWS AMENDMENT ACT (NO. 2) 2003 - SCHEDULE 2

Income Tax Assessment Act 1997

1   Section   11 - 15 (table item headed "defence")

Omit:

substitute:

2   Section   51 - 5 (after table item   1.1)

Insert:

3   Section   51 - 5 (at the end of the table)

Add:

4   After section   51 - 30

Insert:

51 - 32   Compensation payments for loss of deployment allowance for warlike service

    A compensation payment for the loss of your deployment allowance for warlike service is exempt from income tax if:

  (a)   the 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 covered by a certificate in force under paragraph 23AD(1)(a) of the Income Tax Assessment Act 1936 ; and

  (c)   your injury caused the loss of your deployment allowance; and

  (d)   your deployment allowance was payable under a determination under the Defence Act 1903 .

51 - 33   Compensation payments for loss of pay and/or allowances as a Defence reservist

    A compensation payment for the loss of your pay and/or allowances is exempt from income tax if:

  (a)   the 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 injury was the sole or dominant reason for you stopping being a member of that Reserve; and

  (d)   your pay and/or allowances were payable for service of a kind described in paragraph   (b).

5   Application

The amendments of the Income Tax Assessment Act 1997 made by this Schedule apply to assessments for the 1996 - 97 income year and assessments for later income years.