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Edited version of private advice
Authorisation Number: 1051827377898
Date of advice: 15 April 2021
Ruling
Subject: Prize - non-assessable windfall gain
Question
Is the prize you received assessable income?
Answer
No. The value of the prize is not ordinary or statutory income and therefore is not assessable income under subsection 6-5(1), section 6-10 and subsection15-2(1) of the Income Tax Assessment Act 1997. Having considered your circumstances and the relevant factors, the prize is a non-assessable windfall gain. You did not solicit the prize and there is no connection between the payment and employment when awarded voluntarily by the prize giver.
Further information can be found in ATO Interpretive Decision ATO ID 2002/644 Assessability of Prize or on our website ato.gov.au and entering Quick Code QC 31936 into the search bar at the top of the page.
This ruling applies for the following period:
For the income year beginning 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You are an Australian resident for taxation purposes.
You are retired.
You received a prize.
You did not solicit the prize nomination and there is no connection between the payment and employment when awarded voluntarily by the prize giver.
The prize arose out of your research in the relevant field, rather than being attributable to your role as an employee.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 6-5
Income Tax Assessment Act 1997 subsection 6-5(1)
Income Tax Assessment Act 1997 section 6-10
Income Tax Assessment Act 1997 section 10-5
Income Tax Assessment Act 1997 subsection 15-2(1)
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