Private ruling: Assessable income - compensation
Date of advice: 31 January 2023
Published: 20 March 2023
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is the lump sum compensation payment you received assessable income? | A1: No. You received a single lump sum payment to compensate for abuse you suffered as a child. The payment has none of the indicia of income including periodicity, recurrence, or regularity. Therefore, the payment is not included in your assessable income. Further, the payment is exempt from capital gains tax (CGT) as it was paid to compensate for personal harm you suffered.

Relevant facts and circumstances: You applied for compensation for abuse you suffered as a child. You were advised by letter that your application was successful. You received a lump sum payment.

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 118-137