5 April 2007

Families of Defence and Police Personnel Given More Support Through New Superannuation Death Benefit Arrangements

“The Howard Government will provide further financial support to families of Australian Defence Force personnel, Australian Federal Police and state and territory police killed in the line of duty,” Peter Dutton, Minister for Revenue and Assistant Treasurer announced today.

“Non-dependants of ADF personnel, Australian Federal Police including Australian Protective Service Officers, and state and territory police killed in the line of duty (or as a result of injuries sustained in the line of duty) will receive access to the same concessional tax treatment for superannuation death benefits as dependants when they receive a lump sum superannuation death benefit,” Mr Dutton said.

“This will mean that from 1 July 2007, eligible non-dependants will pay no tax on the superannuation benefit left to them by someone who has died in the line of duty.”

“ADF personnel and police play a valuable role in maintaining the safety and security of our nation and our interests, at home and abroad.  Sadly, their brave service sometimes leads to the ultimate sacrifice. This measure recognises this important role and supports those left behind,” Peter Dutton said.

The measure will take effect retrospectively from 1 January 1999.  This will mean, for example, that the non‑dependant family members of deceased ADF and AFP personnel killed in recent overseas deployments, such as Indonesia and the Solomon Islands, will receive a refund of any additional tax paid on the superannuation death benefit.

To give effect to this change, the Australian Government will shortly introduce amendments to the Income Tax Assessment Act 1997.

Cases that have occurred over the period from 1 January 1999 to the date the legislation takes effect will receive an ex gratia payment.  These payments will be administered by the Australian Taxation Office (ATO).

Individuals who consider they may be eligible for a payment should contact the ATO on 13 10 20 for further information.