Provisions relating to overseas benefits

(Clauses 11, 39, 57 (21, 22, 27) and 108)

Summary of proposed amendment

This bill rationalises some provisions relating to overseas benefits in the Income Tax Act 2007.

Application date

The amendment will apply from the date of enactment.

Key features

This bill proposes to simplify some provisions relating to overseas benefits in the Income Tax Act 2007 particularly the interaction with the Social Security Act 1964. The amendments will not reduce any person’s entitlements.

Background

Currently, section CW 28 of the Income Tax Act 2007 exempts an overseas benefit from income tax to the extent that section 70 of the Social Security Act 1964 applies. These tax exemptions are still relevant but their interaction with the Social Security Act 1964 is complex and can be simplified.

Some provisions also need updating as they are now spent. For example, the references to the Social Welfare (Transitional Provisions) Act 1990 (which mostly relates to national superannuation and the veteran’s pension) in some provisions in the Income Tax Act 2007 are no longer necessary because most parts of the former Act are now spent.