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Edited version of your private ruling
Authorisation Number: 1012552354142
Ruling
Subject: Assessability of workers compensation
Question
Will the amounts or any portion thereof to be paid pursuant to sections 42 43 or 32 of the Workers Rehabilitation and Compensation Act 1986 (SA) (WRCA), be included in your assessable income?
Answer
No.
This ruling applies for the following periods:
Year ending 30 June 2014
The scheme commences on:
1 July 2013
Relevant facts and circumstances
You sustained compensable disabilities said to have arisen from your employment.
You will receive a redemption offer pursuant to either or sections 32, 42 and 43 of the Workers Rehabilitation and Compensation Act 1986 (SA) (WRCA).
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 118-37.
Reasons for decision
Section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997) deals with receipts of ordinary income. It does not operate to include in assessable income amounts of a capital nature. The money to be received will be capital nature and therefore not assessable income.
The other applicable sections, section 15-30 of the ITAA 1997 and section 118-37 of the ITAA 1997, also will not apply to make the income assessable.
Therefore the payments you receive will not be included in your assessable income.