Private ruling: Lump sum compensation payment
Date of advice: 15 May 2018
Published: August 2018
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will any part of the payment you received be treated as assessable income? | A1: No. The lump sum payment you received is not ordinary income. In addition, while CGT event C2 happened when you accepted the payment determination, the capital gain you made at that time is disregarded in accordance with the ATO view contained in Taxation Ruling TR95/35 Income Tax: capital gains: treatment of compensation receipts .

Relevant facts and circumstances: You were the primary victim of an act of violence. You have been awarded a payment from your state’s compensatory authority, as a recognition payment to recognise the trauma suffered.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 6-5 | Income Tax Assessment Act 1997 Section 6-10 | Income Tax Assessment Act 1997 Paragraph 118-37(1) (b)