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Edited version of your written advice
Authorisation Number: 1051513729453
Date of advice: 07 May 2019
Ruling
Subject: Income tax: assessability of income: crisis benefit payment
Question
Is a crisis benefit payment component from an income protection policy assessable income?
Answer
No, the crisis benefit payment is not ordinary or statutory income and in accordance with subsection 6-15(1) of the Income Tax Assessment Act 1997, is not assessable.
This ruling applies for the following period:
Year ended 30 June 20xx
The scheme commences on:
1 July 20xx
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 held an income protection policy.
Under the policy, you were eligible to receive a crisis benefit payment in the event of certain medical conditions occurring.
The crisis benefit payment consists of a lump sum amount which is paid to you upon you experiencing a particular disease or medical condition in accordance with the terms in the policy.
You were diagnosed with a medical condition.
You received a crisis benefit payment under the policy.
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 102-5
Income Tax Assessment Act 1997 paragraph 118-37(1)(b)