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Edited version of your private ruling
Authorisation Number: 1011948631660
This edited version of your ruling will be published in the public register of private binding rulings after 28 days from the issue date of the ruling. The attached private rulings fact sheet has more information.
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Ruling
Subject: Workers compensation
Questions and answers:
Will the lump sum redemption amounts or any portion thereof to be paid pursuant to sections 42 and 32 of the Workers Rehabilitation and Compensation Act 1986 (SA) (WRCA), be included in your assessable income?
No.
Will any capital gain arising from the lump sum redemption amounts be disregarded?
Yes.
This ruling applies for the following period:
Year ended 30 June 2012
The scheme commenced on:
1 July 2011
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You sustained compensable disabilities said to have arisen from your employment.
As a result of these injuries, you are entitled to receive weekly income maintenance pursuant to Division 4 of the WRCA and medical and other expenses pursuant to section 32 of the WRCA.
You have indicated a willingness to enter into an agreement to terminate your employment. One of the conditions of the agreement is that you will accept two 'once and for all' payments which would extinguish any future rights you have to weekly income maintenance and medical expenses payments.
Relevant legislative provisions:
Income Tax Assessment Act 1997 Section 6-5.
Income Tax Assessment Act 1997 Section 15-30.
Income Tax Assessment Act 1997 Section 82-130.
Income Tax Assessment Act 1997 Section 82-135.
Income Tax Assessment Act 1997 Section 118-37.