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Edited version of your private advice
Authorisation Number: 1051960045140
Date of advice: 27 May 2022
Ruling
Subject: Ex-gratia payment
Question
Is the ex-gratia payment of $XXX which you received from your employer by order of your state's employment tribunal assessable to you?
Answer
No.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
XX 20XX
Relevant facts and circumstances
In Early 20XX you were injured at work.
You submitted a claim through Local Government Association Workers Compensation Scheme (LGAWCS) which was not accepted.
You disputed the ruling and settled in XX 20XX with the original LGAWCS ruling standing.
Your state's employment tribunal ordered a $XXX ex-gratia payment from your employer to be paid to you to cover out of pocket expenses.
Your request for this to be paid via a deed of release was rejected.
The $8,000 ex-gratia payment was made to you in Late 20XX with the notation that you assume any taxation liability arising from the payment.
Your final disbursements were paid on in Early 20XX.
You are still employed with your employer.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 6-5
Income Tax Assessment Act 1997 section 6-5
Income Tax Assessment Act 1997 section 10