Section DF 4 — Income Tax Act 2007: Payments for social rehabilitation

DF 4 Payments for social rehabilitation When this section applies (1) This section applies when a person is paid under the Accident Compensation Act 2001 a personal service rehabilitation payment for an income year and the amount is assessable income of the person. Deduction (2) The person is allowed a deduction for an amount calculated using the formula— amount paid 1 − tax rate. Definition of items in formula (3) In the formula,— (a) amount paid is the amount paid by the person for a key aspect of social rehabilitation provided to them for the income year, to the extent to which the amount is less than the amount of personal service rehabilitation payment paid to them for the income year after taking into account any amount of tax withheld: (b) tax rate is the rate of tax applying to the personal service rehabilitation payment under schedule 4 , part I, clause 1 (Rates of tax for schedular payments). Link with subpart DA (4) This section supplements the general permission and overrides the capital limitation and private limitation for the amount described in subsection (2). The other general limitations still apply. Defined in this Act: amount , amount of tax , assessable income , capital limitation , general limitation , general permission , income year , pay , personal service rehabilitation payment , private limitation , tax Compare: 2004 No 35 s DF 4 Section DF 4: substituted, on 1 July 2008, by section 343 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section DF 4(1): amended, on 21 December 2010, by section 189 of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130). Section DF 4(3) heading: amended (with effect on 1 April 2008), on 29 August 2011 (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section DF 4(3)(b): amended (with effect on 1 July 2008), on 6 October 2009, by section 88 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).