38.4 Redemptions

Lump sum redemptions made in accordance with sections 30 or 137 of the SRCA are taxable. However that component of a lump sum redemption to a former employee under section 137 that is made in substitution of incapacity payments beyond [glossary::469] is exempt from income tax. See 20.28.3 of this manual for further information.

Source URL: https://clik.dva.gov.au/military-compensation-srca-manuals-and-resources-library/incapacity-handbook/ch-38-taxation-arrangements-applicable-incapacity-payments/384-redemptions