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Edited version of private advice
Authorisation Number: 1051764196333
Date of advice: 06 October 2020
Ruling
Subject: Assessable income - windfall gain
Question
Is the prize awarded to you assessable income under either section 6-5 or section 6-10 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
No. The prize is not ordinary or statutory income and therefore is not assessable income under either section 6-5 or section 6-10 of the ITAA 1997. The cash prize was not remuneration for services, you did not solicit the prize and did not rely on winning the prize to provide for your regular maintenance. It is a non-assessable windfall gain. Further information can be found in ATO ID 2002/644.
This ruling applies for the following period:
Year ended 30 June 2020
The scheme commences on:
1 July 2019
Relevant facts and circumstances
You received a Prize.
You didn't submit a nomination for the prize.
The prize was awarded for a paper that yourself and your co-author wrote.
At the time the paper was written you were a student studying.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 6-5
Income Tax Assessment Act 1997 Section 6-10