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Edited version of private advice
Authorisation Number: 1051567999149
Date of advice: 20 August 2019
Ruling
Subject: Compensation payment
Question
Is the compensation payment you received exempt?
Answer
Yes Under section 118-37 of the Income Tax Assessment Act 1997, a capital gain or loss you make from a CGT event relating directly to any wrong, injury or illness you suffer personally is disregarded.
For more information see Taxation Ruling 95/35 income tax: capital gains: treatment of compensation receipts.
This ruling applies for the following Period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The relevant documents form part of this ruling are:
· the application for private ruling, and
· the Deed of Settlement and Release.
You raised a complaint to a Bank regarding a breach of privacy.
The Bank offered you financial compensation of $XX,XXX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-37