Private ruling: Income tax: assessability of income: crisis benefit payment
Date of advice: 7 May 2019
Published: July 2019
Ruling period: Year ended 30 June 20xx
Date scheme commenced: 1 July 20xx

Ruling: Q1: Is a crisis benefit payment component from an income protection policy assessable income? | A1: No, the crisis benefit payment is not ordinary or statutory income and in accordance with subsection 6-15(1) of the Income Tax Assessment Act 1997 , is not assessable.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You held an income protection policy. Under the policy, you were eligible to receive a crisis benefit payment in the event of certain medical conditions occurring. The crisis benefit payment consists of a lump sum amount which is paid to you upon you experiencing a particular disease or medical condition in accordance with the terms in the policy. You were diagnosed with a medical condition. You received a crisis benefit payment under the policy.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5 | Income Tax Assessment Act 1997 section 6-10 | Income Tax Assessment Act 1997 section 6-15 | Income Tax Assessment Act 1997 section 102-5 | Income Tax Assessment Act 1997 paragraph 118-37(1)(b)