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Edited version of your written advice
Authorisation Number: 1051484996840
Date of advice: 21 February 2019
Ruling
Subject: Lump Sum Compensation
Question
Is the ex-gratia payment assessable income?
Answer
No. The lump sum ex-gratia payment you received is not assessable income in accordance with the ATO view contained in Taxation Ruling TR 95/35 Income tax: capital gains: treatment of compensation receipts.
This ruling applies for the following period:
Year ended 30 June 20YY
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
You were employed by Company A for a period of time.
You ceased employment with Company A.
You lodged a complaint with the Anti-Discrimination Tribunal alleging breaches under the relevant state act, and complaints under the federal employment framework. Your complaint with the Anti-Discrimination Tribunal subsumed the federal complaint into its deliberations.
Company A denied all liability and following conciliation an agreement was reached under which Company A made an ex-gratia payment of a specified amount to settle your claim.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 6-5.
Income Tax Assessment Act 1997 Section 6-10.
Income Tax Assessment Act 1997 Section 6-15.
Income Tax Assessment Act 1997 Section 15-30.
Income Tax Assessment Act 1997 Paragraph 118-37(1)(a).