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Edited version of private advice
Authorisation Number: 1051812109317
Date of advice: 04 March 2021
Ruling
Subject: Assessable income - informal private arrangement
Question
Will the settlement amount be included in your assessable income?
Answer
No.
Having considered your circumstances and relevant factors, the settlement funds you will receive are not in respect of, or in relation to any income-producing activity and are conducted under an informal private arrangement. Therefore, the payments will not be assessable income under section 6-5 or 6-10 of the Income Tax Assessment Act 1997.
This ruling applies for the following periods:
Financial year ended 30 June 20XX
Financial Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You are in receipt of payments under an informal private settlement arrangement.
The payment is to compensate you for a personal wrong which was committed against you.
Relevant legislative provisions
Income Tax Assessment Act 1936 subsection 6-1(1)
Income Tax Assessment Act 1936 section 6-5
Income Tax Assessment Act 1936 section 6-10