51‑32 Compensation payments for loss of 51‑32 Compensation payments for loss of tax exempt payments

51‑32 Compensation payments for loss of tax exempt payments

(1) A compensation payment for the loss of pay or an allowance for your warlike service is exempt from income tax if: (a) the compensation 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 or disease caused the loss of your pay or allowance; and (d) your pay or allowance was payable under the Defence Act 1903 or under a determination under that Act. (2) A compensation payment for the loss of pay or an allowance for your warlike service is exempt from income tax if: (a) the compensation payment is made under the Military Rehabilitation and Compensation Act 2004 in respect of a service injury or disease (as defined in that Act); and (b) you sustained your service injury or contracted your service disease, or your service injury or disease was aggravated or materially contributed to, while covered by a certificate in force under paragraph 23AD(1)(a) of the Income Tax Assessment Act 1936; and (c) your injury or disease caused the loss of your pay or allowance; and (d) your pay or allowance was payable under the Defence Act 1903 or under a determination under that Act. (3) Subsections (4) and (5) apply to: (a) a deployment allowance; or (b) some other allowance that is exempt from income tax specified in writing by the Minister administering section 1 of the Defence Act 1903 for the purposes of this subsection; that is payable under a determination under that Act for your non‑warlike service. (4) A compensation payment for the loss of the allowance is exempt from income tax if: (a) the compensation 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) your injury caused the loss of your allowance. (5) A compensation payment for the loss of the allowance is exempt from income tax if: (a) the compensation payment is made under the Military Rehabilitation and Compensation Act 2004 in respect of a service injury or disease (as defined in that Act); and (b) your injury or disease caused the loss of your allowance.