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Edited version of private advice

Authorisation Number: 1051720289257

Date of advice: 15 July 2020

Ruling

Subject: Assessable income

Question

Is specific injury payment that you received under the terms of your insurance policy assessable income as per section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997)?

Answer

No. It is accepted that the lump sum payment you have received is not a payment for income as it was not earned, expected, relied upon, and did not have an element of periodicity, recurrence or regularity.

This ruling applies for the following period:

Year ended 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

You are employed.

Your employer has a group salary continuance policy for their employees.

You fractured your arm and made a claim for a specific injury payment.

You continued to work and did not access the insurer's monthly salary continuance payments as income replacement.

You received a lump sum payment after the insurer found that your injury met the requirements for a specific injury payment.

This amount has been included on your 20XX PAYG payment summary.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 6-5


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