On 6 June 2012, the Government announced its commitment to clarify the tax treatment of native title benefits.
The Assistant Treasurer, the Hon David Bradbury MP, has released public consultation exposure draft legislation and associated explanatory material to give effect to that announcement.
The exposure draft package clarifies that native title benefits are non-assessable non-exempt income and are therefore not subject to income tax (which includes capital gains tax).
Subject to the passage of legislation, these changes are expected to apply retrospectively to native title benefits received on or after 1 July 2008.