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  • Redress scheme payments

    Redress scheme payments made as compensation or damages for a wrong, injury or illness are non-assessable income.

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    What a redress scheme does

    Redress schemes are about making an acknowledgement for wrongs in the past. They have general features that include payments for harm, harassment or discrimination of a person.

    Redress scheme payments made as compensation for:

    • damages for a wrong, injury or illness an individual suffers personally – are non- assessable payments
    • financial loss or on termination – may be assessable.

    Redress scheme payments and your tax return

    You don't need to declare any payments you receive from a redress scheme that are made as compensation for personal injury you suffer.

    These payments are non-assessable income. This means you don't need to include these amounts in your tax return.

    These payments are also not subject to capital gains tax.

    Examples of redress schemes

    Several state and national redress schemes have come into operation in the last few years, such as the:

    Information relating to these redress schemes, who they apply to, when they started and how long they will run follows.

    2018 Australian Government's National Redress Scheme

    The Australian Government's National Redress SchemeExternal Link payments started on 1 July 2018 and will run for ten years. The scheme provides support to those who have experienced institutional child sexual abuse. It will help these people gain access to counselling, a direct personal response, and a redress payment.

    2020 Victorian Government's Restorative Engagement and Redress Scheme

    The Victorian Government's Restorative Engagement and Redress SchemeExternal Link payments started on 1 July 2020. The scheme is available to both former and current Victoria Police employees who have experienced sex discrimination or sexual harassment in the workplace. It will offer a range of help options for eligible participants. These include counselling, a restorative engagement process and financial payments.

    2022 Territories Stolen Generations Redress Scheme

    The Territories Stolen Generations Redress SchemeExternal Link was announced on 5 August 2021 and will run for 5 years. It opened for applications on 1 March 2022.

    The scheme has been established to help the Stolen Generations heal the trauma from being forcibly removed from their family.

      Last modified: 08 Jun 2022QC 63296