1. The Tax changes do not affect any DVA Pension (incl TPI) in any way.
2. The Tax changes only affect those who:
• receive DFRDB or MSBS Class A or Class B Invalidity Benefits, AND
• applied for a Private Ruling from the Australian Taxation Office in the last year.
3. Only about 392 Veterans have had these Private Rulings. ComSuper should have advised them of the Tax change by now.
4. Private Rulings required a bit of complex dealings with the ATO involving your:
• providing 2 x doctors’ certificates to the ATO; and
• making a formal election to have your Invalidity Benefit payments treated as lump sum payments.
5. You would remember if you had to go through this. If you do not know about Private Rulings, then, this tax change does not affect you.
IF YOU RECEIVE DFRDB or MSBS CLASS A or B DISABILITY BENEFITS.
6. We recommend you monitor the ADSO or DFWA websites for up to date information on developments in this area of taxation of Class A and B DFRDB or MSBS Invalidity Benefits.
7. You can also get up to date information and post questions on-line by joining Facebook Groups which specialise in this area. These Groups are:
• COMSUPER-MILITARY ENTITLEMENTS, and https://www.facebook.com/groups/1098180903529690/
• ADF Invalidity Payments-Taxation Treatment. https://www.facebook.com/groups/1709523469074142/
8. Some members of these groups are actively challenging ComSuper at the Administrative Appeals Tribunal and Federal Court over the way ComSuper has been reporting your Invalidity Benefit payments to the ATO. ADSO is strongly supporting the actions of these groups.
9. If Court Action is successful, it is likely that many of those receiving DFRDB or MSBS Invalidity Benefits, will pay much less tax. So it pays to:
• Monitor the situation, and
• Support the Groups and ADSO organisations fighting for you.