EV 1052080984789currentnon-binding advice

Assessable income - compensation

Non-binding edited private advice. This is an edited version of private advice the ATO gave to a specific taxpayer about their own circumstances. You cannot rely on it — it is not binding and provides no protection for anyone else (see PS LA 2008/4). Use it as a guide to the ATO’s thinking, not as authority.

1

Is the lump sum compensation payment you received assessable income?

2

No. You received a single lump sum payment to compensate for abuse you suffered as a child. The payment has none of the indicia of income including periodicity, recurrence, or regularity. Therefore, the payment is not included in your assessable income. Further, the payment is exempt from capital gains tax (CGT) as it was paid to compensate for personal harm you suffered. This ruling applies for the following period : Year ending 30 June 20XX The scheme commences on: 1 July 20XX

3

You applied for compensation for abuse you suffered as a child. You were advised by letter that your application was successful. You received a lump sum payment.

4

Income Tax Assessment Act 1997 section 6-5 Income Tax Assessment Act 1997 section 6-10 Income Tax Assessment Act 1997 section 118-137