7.17 Taxation status of entitlements relating to death

Last amended: 9 April 2013

The taxation status of death benefits is as follows:

 

Payment

Taxation Status

 

 

Wholly dependent partner pension (periodic and lump sum)

Exempt

Additional Compensation Following Death

Exempt

Financial Assistance to WDP

Exempt

Eligible Young Person Lump Sum

Exempt

Eligible Young Person Periodic Payments

Exempt

Other Dependant Lump Sums

Exempt

MRCA Supplement

Exempt

Funeral Benefits

Exempt

Education Assistance for Children

Exempt when paid to a child under 16, Taxable when paid to a child over 16, unless paid to an eligible child of a deceased member or former member of the ADF whose death has been accepted under the MRCA as having been related to ADF service

Bereavement Payments based on SRDP and PI

Exempt

Bereavement Payments based on Incapacity Payments

Taxable (refer to 7.10 of the MRCA policy handbook for further information)

 

 

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-7-compensation-death/717-taxation-status-entitlements-relating-death