Income Tax Assessment Act 1997



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 54-60   Requirements for payments of the lump sum  

The instrument under which the *personal injury lump sum is paid must specify the date and amount of the payment of the lump sum.

The instrument may only allow the amount of the payment to be varied by increasing the amount:

(a) in order to maintain its real value:

(i) by indexation by reference to increases in the *All Groups Consumer Price Index number; or

(ii) by indexation by reference to increases in the full-time adult average weekly ordinary time earnings, published by the Australian Statistician; or

(b) by a percentage specified in the instrument.

The instrument may only allow the amount of the payment to be varied:

(a) by only one of the methods referred to in subsection (2); or

(b) by whichever of 2 or more of those methods would result in the biggest or smallest increase.

A reference in this section to specifying a date or percentage requires an actual date or figure to be specified, not merely a method of determining a date or figure.


Under subsection (1), " 13 September 2002 " would be allowed, but " The date on which the annuitant finishes university " would not be allowed.


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