Document ID: chunk:federal_register_of_legislation:C2010C00622:clause:2_3
Version: federal_register_of_legislation:C2010C00622
Segment Type: clause
Provision Reference: sch 2 cl 3
Character Range: 19048–20605

3  At the end of Division 51
Add:

51‑55  Interest on judgment debt relating to personal injury

 (1) An amount paid by way of interest on a judgment debt, whether payable under a law of the Commonwealth, a State or Territory, or otherwise, is exempt from income tax if:
 (a) the judgment debt arose from a judgment (the original judgment) given by, or entered in, a court for an award of damages for personal injury; and
 (b) the amount is in respect of the whole or any part of the period:
 (i) beginning at the time of the original judgment, or, if the judgment debt is taken to have arisen at an earlier time, at that earlier time; and
 (ii) ending when the original judgment is finalised.

 (2) For the purposes of subsection (1), an original judgment is finalised at whichever of the following times is applicable:
 (a) if the period for lodging an appeal against either the original judgment or a subsequent related judgment ends without an appeal being lodged—the end of the period;
 (b) if an appeal from either the original judgment or a subsequent related judgment is lodged and final judgment on the appeal is given by, or entered in, a court—when the final judgment takes effect;
 (c) if an appeal from either the original judgment or a subsequent related judgment is lodged but is settled or discontinued—when the settlement or discontinuance takes effect.

 (3) For the purposes of paragraph (2)(b), a judgment is a final judgment if:
 (a) no appeal lies against the judgment; or
 (b) leave to appeal against the judgment has been refused.