Private ruling: Assessable income
Date of advice: 15 July 2020
Published: August 2020
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is specific injury payment that you received under the terms of your insurance policy assessable income as per section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: No. It is accepted that the lump sum payment you have received is not a payment for income as it was not earned, expected, relied upon, and did not have an element of periodicity, recurrence or regularity.

Relevant facts and circumstances: You are employed. Your employer has a group salary continuance policy for their employees. You fractured your arm and made a claim for a specific injury payment. You continued to work and did not access the insurer's monthly salary continuance payments as income replacement. You received a lump sum payment after the insurer found that your injury met the requirements for a specific injury payment. This amount has been included on your 20XX PAYG payment summary.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5