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Edited version of private advice
Authorisation Number: 1051720289257
Date of advice: 15 July 2020
Ruling
Subject: Assessable income
Question
Is specific injury payment that you received under the terms of your insurance policy assessable income as per section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
No. It is accepted that the lump sum payment you have received is not a payment for income as it was not earned, expected, relied upon, and did not have an element of periodicity, recurrence or regularity.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You are employed.
Your employer has a group salary continuance policy for their employees.
You fractured your arm and made a claim for a specific injury payment.
You continued to work and did not access the insurer's monthly salary continuance payments as income replacement.
You received a lump sum payment after the insurer found that your injury met the requirements for a specific injury payment.
This amount has been included on your 20XX PAYG payment summary.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 6-5