INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-15 - NON-ASSESSABLE INCOME  

Division 54 - Exemption for certain payments made under structured settlements and structured orders  

Subdivision 54-C - Tax exemption for personal injury lump sums  

Operative provisions

SECTION 54-55   54-55   Requirements of the instrument under which the lump sum is paid  


The instrument under which the *personal injury lump sum is paid must:


(a) identify the *structured settlement or *structured order under which the lump sum is provided; and


(b) only allow for the payment of the lump sum to be made to:


(i) the *injured person; or

(ii) a trustee of a trust of which the injured person is the beneficiary; and


(c) contain a statement to the effect that the right to receive the lump sum cannot be assigned, and cannot be commuted or otherwise cashed-out early.

Note:

Division 2A of Part 10 of the Life Insurance Act 1995 makes a purported assignment or commutation (or cashing-out) that is contrary to paragraph (c) ineffective.


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