Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (NO. 2) 2003 NO. 65, 2003 - SCHEDULE 2

Income Tax Assessment Act 1997

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:

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.