Date amended:
External
Policy
Compensation type payments
The following payments that are made by DVA are considered to be compensation, and are not taxable:
- Disability Compensation Payment,
- war widow's/widower's pension, and
- orphan's pension.
Additional allowances that are non-taxable
Payments of the following allowances, where eligibility arises from a veterans' compensation payment, are non-taxable:
- bereavement payment in respect of Disability Compensation Payment,
- veterans supplement (including veterans supplement paid to war widows),
- attendant allowance,
- [glossary:temporary:] incapacity [glossary:allowance,:]
- [glossary:recreation transport allowance,:]
- loss of earnings allowance,
- [glossary:clothing allowance,:]
- [glossary:Victoria Cross allowance:], and
- decoration allowance.
Veterans' Children Education Scheme (VCES)
Education allowance paid in respect of a child who has not attained 16 years of age is not taxable.