Private ruling: Income Tax - Exempt Income
Date of advice: 5 June 2019
Published: August 2019
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is your lump sum insurance payment for trauma assessable income? | A1: No.The lump sum insurance payment for trauma is not ordinary income and is therefore not assessable under subsection 6-5(2) of the ITAA 1997.

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 hold a Flexible Lifetime - Protection Plan (Income Protection Advanced) insurance policy with XYZ. You were diagnosed with a medical condition which qualifies for a trauma benefit as outlined in your insurance policy. A letter dated X October 20XX from XYZ states that a trauma benefit payment of $XX will be credited to your nominated bank account. You received the lump sum payment of $XX on X October 20XX.

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(1) | Income Tax Assessment Act 1997 paragraph 118-37(1)(a)