Private ruling: Assessability of workers compensation
Ruling period: Year ended 30 June 2012
Date scheme commenced: 1 July 2011

Ruling: Question and answer | Is the lump sum payment you receive under section 45A of the Workers Rehabilitation and Compensation Act 1986 (SA) (the WRCA) included in your assessable income? | No.


Relevant legislative provisions: Income Tax Assessment Act 1997 Subsection 6-5(2). | Income Tax Assessment Act 1997 section 118-37(1)(b)


Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. Contact us at the address given in the fact sheet if you have any concerns. | The scheme that is the subject of the ruling: You received a lump sum payment under section 45A of the WRCA. | Explanation: (This form does not form part of the ruling): While these reasons are not part of the private ruling, we provide them to help you to understand how we reached our decision. | Class ruling CR 2010/8 Income tax: assessability of lump sum compensation receipts and interest paid under section 45A of the Workers Rehabilitation and Compensation Act 1986 (South Australia) , discusses the Commissioner's view on the taxation consequences of lump sum payments made under section 45A of the WRCA. | CR 2010/8 says that a lump sum compensation amount received under section 45A of the WRCA is not ordinary income under section 6-5 of the ITAA 1997. | Furthermore, any capital gain or loss made from the receipt of the lump sum compensation payment under section 45A is disregarded under paragraph 118-37(1)(b) of the ITAA 1997. | Accordingly, none of the lump sum payment you receive under section 45A of the WRCA will be included in your assessable income.