The Government will ensure that payments received by Australian residents under the German Forced Labour Compensation Program are not subject to capital gains tax (CGT).
The payment of compensation under the Compensation Program to victims or their relatives for personal wrong or injury, or to former owners of property for loss of that property, does not give rise to a CGT liability under the present law.
The Government will extend this CGT exemption to cover payments under the Program to eligible heirs of those who suffered wrong or injury or loss of property.
The CGT exemption will apply to payments whether made before or after the commencement of this measure.
18 October, 2001
Media contact: Michael Fletcher Assistant Treasurer's Office (02) 6277 7360