I am pleased to announce that the Government will introduce tax exemptions for payments received from Second World War compensation funds. The exemptions will apply to payments relating to persecution by forces of an enemy of the Commonwealth during the Second World War.
Only some Second World War compensation payments are currently exempt from income tax or capital gains tax. This new measure will ensure that all payments received by Australian residents from Second World War compensation funds in the 2001-02 and later income years will be tax-free.