Private ruling: Assessable income - informal private arrangement
Date of advice: 4 March 2021
Published: April 2021
Ruling period: Financial year ended 30 June 20XX | Financial Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the settlement amount be included in your assessable income? | A1: No. Having considered your circumstances and relevant factors, the settlement funds you will receive are not in respect of, or in relation to any income-producing activity and are conducted under an informal private arrangement. Therefore, the payments will not be assessable income under section 6-5 or 6-10 of the Income Tax Assessment Act 1997 .

Relevant facts and circumstances: You are in receipt of payments under an informal private settlement arrangement. The payment is to compensate you for a personal wrong which was committed against you.

Relevant legislative provisions: Income Tax Assessment Act 1936 subsection 6-1(1) | Income Tax Assessment Act 1936 section 6-5 | Income Tax Assessment Act 1936 section 6-10