In 1997, legislation was passed that allowed recipients of payments from super funds to have favourable taxation rules applied to those payments -
Transition to Retirement - was one such medium.   DFRDB and MSBS Invalidity payments also came under that legislation, which meant many Defence Personnel who were discharged from their Service and received Class A or B payments could save (in most cases) many of hundreds of dollars on their fortnightly benefit.

The Commonwealth Superannuation Corporation (as it is known now) did not inform any of it's members that they were entitled to favourable tax treatment and only a few have used this legislation until the middle of last year when it became common knowledge and over 2000 invalided veterans undertook the requirements to have fairer tax treatment.   Whilst the ATO were fair and reasonable, the actions of the CSC were totally at odds with their charter to their members in that they obfuscated and delayed information wherever they could.

The Government has repealed the legislation as from the the 1st July meaning that many veterans, who receive no other Commonwealth Benefits or concessions- will see a dramatic increase in their fortnightly tax

Whilst not all Defence Personnel are subject to this ruling, I have enclosed a link to a petition should you decide to assist.

Regards,

Vic


[url]http://www.aph.gov.au/Parliamentary_Business/Petitions/House_of_Representatives_Petitions/Petitions_General/Sign_an_e-petition?id=EN0242/url]

Following a long and costly court battle, we have had a victory in court regarding the taxation of invalidity benefits for those people on Class A or B pensions from Comsuper.  I will post a link to the decision when it is available, but if no appeals from Comsuper or the Commonwealth are going to hold things up, you will see a dramatic drop in the tax you pay and perhaps some back pay