Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT 1991No. 48, 1991 - SECT 10

10. Section 23AD of the Principal Act is amended:
(a) by omitting "Part VI" from subparagraph (b) (i) of the definition of

"excepted payment" in subsection (1) and substituting "VI, section 68";
(b) by inserting "or Schedule 1B" before "of the" in subparagraph (b) (i) of
the definition of "excepted payment" in subsection (1);
(c) by omitting paragraph (g) of the definition of "excepted payment" in
subsection (1) and substituting the following paragraph:
  "(g)   a payment under subsection 57A (2) or subparagraph 57A (3) (b) (ii)
of the Veterans' Entitlements Act 1986;";

   (d)  by omitting from paragraph (a) of the definition of "excepted pension"
        in subsection (1) "or section 237" and substituting "or section 67";

   (e)  by omitting from paragraph (c) of the definition "excepted pension" in
        subsection (1) "or the veteran being cared for by a person" and
        substituting ", the veteran being cared for by a person or the
        deceased veteran who was being cared for by a person";

   (f)  by inserting in subsection (1) the following definition:

" `age-pension age' means:

   (a)  in the case of a woman - 60 years; or

   (b)  in the case of a man - 65 years;";

   (g)  by inserting in paragraph (3) (a) "or payments under subsection 57A
        (2)
or subparagraph 57A (3) (b) (ii) of the Veterans' Entitlements Act 1986" after
"excepted payments" (first occurring);

   (h)  by omitting paragraph (3) (aaa);

   (j)  by omitting from paragraph (3) (c) "subsection 365 (2) of the Imperial
        Act known as the Income and Corporation Taxes Act 1970" and
        substituting "subsection 315 (2) of the Income and Corporation Taxes
        Act 1988 of the United Kingdom";

   (k)  by inserting in paragraph (3) (d) "or payments under subsection 66 (2)
or subparagraph 66 (3) (b) (ii) of the Social Security Act 1947" after
"excepted payments";

   (m)  by omitting "and" from the end of paragraph (3) (d);

   (n)  by omitting paragraph (3) (e) and substituting the following
        paragraphs:
  "(e)   if a payment is made to or in respect of the taxpayer under
subsection 66 (2) of the Social Security Act 1947 on a particular pension
pay-day and both of the following subparagraphs apply:

   (i)  the taxpayer had not attained age-pension age on the pension pay-day;

   (ii) no part of the pension or allowance payable to or in respect of the
        taxpayer immediately before the death of the deceased pensioner
        concerned was an excepted payment; so much of that payment under that
        subsection as represents an amount covered by paragraph (a) of that
        subsection;

   (f)  if a payment is made to or in respect of the taxpayer under subsection
        66 (2) of the Social Security Act 1947 on a particular pension pay-day
        and all of the following subparagraphs apply:

   (i)  the taxpayer had not attained age-pension age on the pension pay-day;

   (ii) the whole or a part of the pension or allowance payable to or in
        respect of the taxpayer immediately before the death of the deceased
        pensioner concerned (which pension or allowance is in this paragraph
        called the `original pension or allowance') was an excepted payment;

   (iii) the deceased pensioner had attained age-pension age;

   (iv) no part of the original pension or allowance would have been an
        excepted payment if the deceased pensioner had not attained
        age-pension age before the death; so much of that payment under that
        subsection as represents an amount covered by paragraph (a) of that
        subsection;

   (g)  if:

   (i)  a payment is made to or in respect of the taxpayer under subsection 66
        (2) of the Social Security Act 1947; and

   (ii) neither paragraph (e) nor (f) of this subsection applies to so much of
        that payment as represents an amount covered by paragraph 66 (2) (a)
        of that Act (which part of that payment is in this paragraph called
        the `paragraph 66 (2) (a) amount'); so much of the paragraph 66 (2)
        (a) amount as does not represent an excepted payment;

   (h)  so much of a payment under subsection 66 (2) of the Social Security
        Act 1947 as represents an amount covered by paragraph (b) of that
        subsection;

   (j)  in the case of a taxpayer to whom paragraph 66 (3) (a) of the Social
        Security Act 1947 applies - so much of the total excepted payments
        made to the taxpayer under that Act on any one of the 7 pension
        pay-days after the death of the deceased pensioner concerned as
        exceeds the total excepted payments that would have been payable to or
        in respect of the taxpayer on that pension pay-day if the deceased
        pensioner had not died;

   (k)  if paragraph 66 (3) (b) of the Social Security Act 1947 applies to the
        taxpayer - so much of the sum of:

   (i)  the excepted payments made to the taxpayer under that Act:

                (A)  on the first available pension pay-day after the
                     notification day referred to in subparagraph 66 (3) (b)
                     (i) of that Act; and

                (B)  on a subsequent pension pay-day, being one of the 7
                     pension pay-days after the death of the deceased
                     pensioner concerned; and

   (ii) the payment made to the taxpayer under subparagraph 66 (3) (b) (ii) of
        that Act;
as does not exceed the amount obtained by:

   (iii) ascertaining for:

                (A)  the first available pension pay-day after the
                     notification day referred to in subparagraph 66 (3) (b)
                     (i) of that Act; and

                (B)  each subsequent pension pay-day, being one of the 7
                     pension pay-days after the death of the deceased
                     pensioner concerned; the amount calculated using the
                     following formula:
Notional CMR - Notional NR where: `Notional CMR' (Notional Combined Married
Rate) means the sum of:

                (C)  so much of the amount that would have been payable to the
                     taxpayer on the pension pay-day if the deceased pensioner
                     had not died as is not an excepted payment; and

                (D)  the amount that would have been payable to the deceased
                     pensioner on the pension pay-day if the deceased
                     pensioner had not died; `Notional NR' (Notional New Rate)
                     means so much of the amount that would have been payable
                     to the taxpayer as an unmarried person on the pension
                     pay-day as is not an excepted payment; and

   (iv) aggregating the amounts calculated under subparagraph (iii) of this
        paragraph;

   (m)  payments under subsection 66 (4) or section 69 or 70 of the Social
        Security Act 1947;

   (p)  if a payment is made to or in respect of the taxpayer under subsection
        57A (2) of the Veterans' Entitlements Act 1986 on a particular pension
        pay-day and both of the following subparagraphs apply:

   (i)  the taxpayer had not attained age-pension age on the pension pay-day;

   (ii) no part of the pension or allowance payable to or in respect of the
        taxpayer immediately before the death of the deceased pensioner
        concerned was an excepted payment; so much of that payment under that
        subsection as represents an amount covered by paragraph (a) of that
        subsection;

   (q)  if a payment is made to or in respect of the taxpayer under subsection
        57A (2) of the Veterans' Entitlements Act 1986 on a particular pension
        pay-day and all of the following subparagraphs apply:

   (i)  the taxpayer had not attained age-pension age on the pension pay-day;

   (ii) the whole or a part of the pension or allowance payable to or in
        respect of the taxpayer immediately before the death of the deceased
        pensioner concerned (which pension or allowance is in this paragraph
        called the `original pension or allowance') was an excepted payment;

   (iii) the deceased pensioner had attained age-pension age;

   (iv) no part of the original pension or allowance would have been an
        excepted payment if the deceased pensioner had not attained
        age-pension age before the death; so much of that payment under that
        subsection as represents an amount covered by paragraph (a) of that
        subsection;

   (r)  if:

   (i)  a payment is made to or in respect of the taxpayer under subsection
        57A (2) of the Veterans' Entitlements Act 1986; and

   (ii) neither paragraph (p) nor (q) of this subsection applies to so much of
        that payment as represents an amount covered by paragraph 57A (2) (a)
        of that Act (which part of that payment is in this paragraph called
        the `paragraph 57A (2) (a) amount'); so much of the paragraph 57A (2)
        (a) amount as does not represent an excepted payment;

   (s)  so much of a payment under subsection 57A (2) of the Veterans'
        Entitlements Act 1986 as represents an amount covered by paragraph (b)
        of that subsection;

   (t)  in the case of a taxpayer to whom paragraph 57A (3) (a) of the
        Veterans' Entitlements Act 1986 applies - so much of the total
        excepted payments made to or in respect of the taxpayer under that Act
        on any one of the 7 pension pay-days after the death of the deceased
        pensioner concerned as exceeds the total excepted payments that would
        have been payable to or in respect of the taxpayer on that pension
        pay-day if the deceased pensioner had not died;

   (u)  if paragraph 57A (3) (b) of the Veterans' Entitlements Act 1986
        applies to the taxpayer - so much of the sum of:

   (i)  the excepted payments made to the taxpayer under that Act:

                (A)  on the first available pension pay-day after the
                     notification day referred to in subparagraph 57A (3) (b)
                     (i) of that Act; and

                (B)  on a subsequent pension pay-day, being one of the 7
                     pension pay-days after the death of the deceased
                     pensioner concerned; and

   (ii) the payment made to the taxpayer under subparagraph 57A (3) (b) (ii)
        of that Act;
as does not exceed the amount obtained by:

   (iii) ascertaining for:

                (A)  the first available pension pay-day after the
                     notification day referred to in subparagraph 57A (3) (b)
                     (i) of that Act; and

                (B)  each subsequent pension pay-day, being one of the 7
                     pension pay-days after the death of the deceased
                     pensioner concerned; the amount calculated using the
                     following formula:
Notional CMR - Notional NR where: `Notional CMR' (Notional Combined Married
Rate) means the sum of:

                (C)  so much of the amount that would have been payable to the
                     taxpayer on the pension pay-day if the deceased pensioner
                     had not died as is not an excepted payment; and

                (D)  the amount that would have been payable to the deceased
                     pensioner on the pension pay-day if the deceased
                     pensioner had not died; `Notional NR' (Notional New Rate)
                     means so much of the amount that would have been payable
                     to the taxpayer as an unmarried person on the pension
                     pay-day as is not an excepted payment; and

   (iv) aggregating the amounts calculated under subparagraph (iii) of this
        paragraph;

   (w)  payments under subsection 57A (4) or section 57C or 57D of the
        Veterans' Entitlements Act 1986;

   (y)  payments under section 98A of the Veterans' Entitlements Act 1986;

   (z)  payments under section 24B of the Seamen's War Pensions and Allowances
        Act 1940.";

   (p)  by inserting after subsection (3) the following subsections:

"(3A) Subsections 66 (6), (12), (13) and (14) of the Social Security Act 1947
apply in working out amounts covered by paragraphs (3) (j) and (k) of this
section in a corresponding way to the way in which those subsections apply in
working out amounts referred to in section 66 of that Act.

"(3B) Subsections 57A (6), (12), (13) and (14) of the Veterans' Entitlements
Act 1986 apply in working out amounts covered by paragraphs (3) (t) and (u) of
this section in a corresponding way to the way in which those subsections
apply in working out amounts referred to in section 57A of that Act.".