| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your written advice
Authorisation Number: 5010050245433
Date of advice: 15 May 2018
Ruling
Subject: Lump sum compensation payment
Question
Will any part of the payment you received be treated as assessable income?
Answer
No. The lump sum payment you received is not ordinary income. In addition, while CGT event C2 happened when you accepted the payment determination, the capital gain you made at that time is disregarded in accordance with the ATO view contained in Taxation Ruling TR95/35 Income Tax: capital gains: treatment of compensation receipts.
This ruling applies for the following period
Year ended 30 June 20XX
The scheme commences on
1 July 20XX
Relevant facts and circumstances
You were the primary victim of an act of violence.
You have been awarded a payment from your state’s compensatory authority, as a recognition payment to recognise the trauma suffered.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 6-5
Income Tax Assessment Act 1997 Section 6-10
Income Tax Assessment Act 1997 Paragraph 118-37(1) (b)
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
