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Edited version of private advice
Authorisation Number: 1051621241413
Date of advice: 9 January 2020
Ruling
Subject: Windfall gain
Question
Is the talent award you received assessable income?
Answer
No. Based on the information provided to us the prize money you received from a foreign university is not assessable in Australia under sections 6-5 and 6-10 of the Income tax Assessment Act 1997.
This ruling applies for the following period:
Year ended 30 June 2019
The scheme commences on:
1 July 2018
Relevant facts and circumstances
You are a professional and employed as a researcher.
You received a foreign award.
Your research was published in scientific journals, in the field of science.
The research and publications are based on fundamental research, and was not the type of research that leads to products.
The university recognised this achievement by you in contributing significantly to knowledge and ongoing technical developments within the field of science and as such nominated you for the research prize.
You were nominated by an independent professional from the university and were in no way involved in the nomination.
You won the research prize based on the above nomination and received this amount as a lump sum.
You received the amount of $XXX,XXX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 6-5
Income Tax Assessment Act 1997 section 6-10