This Draft TD, issued Wed 24.4.2013, states that foreign earnings derived by Australian Defence Force (ADF) members from a period of leave as a result of an accident or illness that occurred while deployed overseas by the ADF as a member of a disciplined force are exempt under section 23AG of the ITAA 1936. The Draft says this is the case where the earnings are derived during the period the ADF member would otherwise have remained deployed overseas had the accident or illness not occurred.
According to the Draft, the period of foreign service ends at the earliest of when the ADF member would have returned from the deployment but for the accident or illness, or when the ADF member resumes duty in Australia, or when the ADF member receives a medical discharge. It says the earnings derived during an absence from work due to accident or illness after the end of the foreign service period will not be exempt under s 23AG.
DATE OF EFFECT: When the final determination is issued, it is proposed to apply both before and after its date of issue.
COMMENTS are due by 24 May 2013. ATO contact: Danielle Allen – Tel: (08) 8208 1907; Fax: (08) 8208 1904; Email: Danielle.Allen@ato.gov.au.
[LTN 77, 24/4/13]