Veteran invalidity benefits

02 December 2021

With reference to the taxation of veteran invalidity benefits, Labor notes the Morrison-Joyce Government’s announcement that it will clarify the tax arrangements for certain military invalidity benefits.

We understand there are around 12,000 veterans who receive these payments and are affected by the Douglas Federal Court decision, some positively and some negatively.

The Government has said it will introduce legislation to maintain the Federal Court’s ruling for veterans who have had a positive outcome, while ensuring veterans who are negatively impacted will not be worse off.

We understand the Government plans to release draft legislation soon and this will be retrospective to ensure that no-one is made worse off because of the court decision.

However, we note some people are concerned that the proposed legislation could affect their access to veteran support and other government benefits. Labor will continue to raise these concerns with the Government.

We will carefully review the legislation and consult widely with veterans before we come to a final position.