SE66690 - Tax treatment of mineworkers: payments in lieu of free coal

Sums received by miners in lieu of free coal (smokeless fuel in smoke control areas), or for the surrender of any part of the free coal or fuel to which they are entitled under their agreements should be treated by concession as not taxable. Consequently the employer may omit them from deductions working sheets.

The text of the concession is reproduced at SE66691.

For the definition of ‘miner’ for this purpose, see SE66695.

Lump sum payments received by mineworkers on redundancy for surrendering their rights to free coal or cash in lieu fall to be treated as payments made on the termination of employment within Section 148 ICTA 1988, see SE13000.