Families of defence and police officers will be eligible for a tax free superannuation death benefit under new superannuation death benefit arrangements.
Under the changes to the Income Tax Assessment Act 1997, non-dependents of Australia's defence force personnel and police force killed in the line of duty will receive the same concessional tax treatment for superannuation benefits as dependents when they receive a lump sum superannuation death benefit.
The changes will be backdated to January 1999. This will allow families of army officers and federal police who were killed while on duty in Indonesia and the Solomon Islands to be eligible for a refund on the additional tax paid on the superannuation benefit.
The changes will take effect from July 1 2007.
"Australian defence force personnel and police play a valuable role in maintaining the safety and security of our nation both at home and abroad."
"Sadly their brave service sometimes leads to the ultimate sacrifice. This measure recognises this important role and supports those left behind," Minister for Revenue and Assistant Treasurer Peter Dutton said.
