The Government will provide an income tax exemption for military compensation payments provided to Australian Defence Force members for the loss of tax exempt pay and allowances due to a service related injury or illness in non-warlike situations, the Minister for Revenue and Assistant Treasurer, Senator Helen Coonan, announced today.
This extends the tax exemption already available for compensation payments for loss of exempt pay or allowances for ‘warlike’ service.
“These changes are being made retrospectively from 1July1996 to ensure that recipients of the specified payments, first made in the 1996-97 income year, are not disadvantaged,” Senator Coonan said.
For further information relating to the new Military Rehabilitation and Compensation Scheme, refer to media release VA114 of 4December2003 of the Minister for Veterans’ Affairs.