Private ruling: Prize - non-assessable windfall gain
Date of advice: 15 April 2021
Published: June 2021
Ruling period: For the income year beginning 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is the prize you received assessable income? | A1: No. The value of the prize is not ordinary or statutory income and therefore is not assessable income under subsection 6-5(1), section 6-10 and subsection15-2(1) of the Income Tax Assessment Act 1997 . Having considered your circumstances and the relevant factors, the prize is a non-assessable windfall gain. You did not solicit the prize and there is no connection between the payment and employment when awarded voluntarily by the prize giver. Further information can be found in ATO Interpretive Decision ATO ID 2002/644 Assessability of Prize or on our website ato.gov.au and entering Quick Code QC 31936 into the search bar at the top of the page.

Relevant facts and circumstances: You are an Australian resident for taxation purposes. You are retired. You received a prize. You did not solicit the prize nomination and there is no connection between the payment and employment when awarded voluntarily by the prize giver. The prize arose out of your research in the relevant field, rather than being attributable to your role as an employee.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5 | Income Tax Assessment Act 1997 subsection 6-5(1) | Income Tax Assessment Act 1997 section 6-10 | Income Tax Assessment Act 1997 section 10-5 | Income Tax Assessment Act 1997 subsection 15-2(1)