GOVERNMENT TARGETS COMSUPER INVALIDITY BENEFITS FOR SOME VETERANS FROM 1 JULY THIS YEAR

On 1 July some veterans on DFRDB/MSBS Invalidity Pensions who upon application, have had their taxation adjusted to the correct lower rate, i.e. the rate that applies to civilians with similar invalidity payments. This adjustment followed work from a number of successful private rulings from the Australian Tax Office (ATO).

Apparently, following representations from ComSuper  and as part of the sustainable superannuation push, the Government introduced changes to the law which removed the avenue that allowed injured Veterans to have their Invalidity payments taxed correctly from 1 July 2017. The Government calls it a “loophole”, however this legislation has been available for many years.

Those veterans currently affected have already been notified by Comsuper of the changes to their tax as of 1 July.  For most, it means a loss of several hundred dollars a fortnight, for some over a thousand dollars a fortnight.

NOTE: THIS ISSUE IS NOT RELATED TO THE TAX FREE STATUS OF DVA PENSIONS: THEY ARE NOT AFFECTED BY THESE CHANGES TO THE LAW.

DFWA (and ADSO) are consulting with others in the ESO and Defence Community and are seeking legal advice. They will be making direct representations to the Government and Parliament .  We strongly support a petition (petition EN0242) concerning this matter and encourage you to sign it NOW.

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Comments

  1. Charles Fraser says

    Morning. Does this tax hike include incapacity payments from srca?

    Thanks for your time.

    Charles Fraser

  2. Salvatore Costanzo says

    In typical fashion this government just keeps on screwing everyone while their snouts are firmly entrenched in the trough.

  3. Bevan Mckew says

    I have gone through the DVA process since August last year ! It is beyond doubt the most stressful and Brocken systems that I have had to endure. It still goes as I have been unsupported in my attempt to go to University to further my skills to gain employment.
    The government attack on Veterans whilst they are receiving a pay rise is another nail in the current Governments coffin ! They talk a good game but they are yet to walk on the field, whilst out veterans suicide numbers climb.
    The so called loophole, were they have made a decision to bring it back to other civilian pensions is ridiculous money grabbing ! We served in the Military in different capacities and it is different from civilian life.

  4. Michael White says

    This is unconsienable. These people afforded us our freedoms which should not mean the freedom to reduce their living standards. Just think what the money that a 2% cut in politicians wages could do.

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