Private ruling: Payment received
Date of advice: 27 April 2022
Published: August 2022
Ruling period: Year ended 30 June XXXX
Date scheme commenced: 1 July XXXX

Ruling: Q1: Are you liable for tax on the compensation payment? | A1: No. The amount received as compensation, is not regarded as ordinary assessable income. This amount is capital in nature and subject to the capital gains tax provisions. In your case any capital gain made will be disregarded under section 118-305 of the Income Tax Assessment Act 1997 .

Relevant facts and circumstances: You received an offer from your superannuation fund to pay compensation for potential inappropriate advice received in relation to your superannuation product. You received an amount of compensation.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5 | Income Tax Assessment Act 1997 section 102-5 | Income Tax Assessment Act 1997 section 118-305