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Edited version of private advice
Authorisation Number: 1051789861128
Date of advice: 15 December 2020
Ruling
Subject: Assessable income - windfall gain
Question
Is the prize awarded to you considered assessable income under section 6-5 or section 6-10 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
No. The prize is not considered ordinary or statutory income and not assessable income under 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.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You received a Prize.
You didn't submit a nomination for the prize.
The prize recognizes the individual's lifetime achievements.
The prize is an international recognition and is awarded to an individual.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 6-5
Income Tax Assessment Act 1997 section 6-10