Is my compensation or damages payment taxable?
No, your compensation and damages settlement payment or award is not taxable. This means that you are not required to disclose your compensation or damages payment achieved from your personal injury claim, in your tax return when lodging it with the Australian Taxation Office. In saying this however, if you use your settlement monies or damages award to earn income after it is received by you, then you are required to declare that income in your taxation return. Any income made from your claim payment is taxable income.
For example, if you receive your compensation payment at the conclusion of your personal injury claim and you use your settlement funds to start up your own business as a courier driver, then any income you make from the courier business is taxable income that you must declare in your taxation return and to the 'Taxman'. Similarly, if you place your settlement monies into a bank account so it will earn you interest, again the interest earned is income and it will need to be declared in your taxation return when lodging it with the Australian Taxation Office.
Chat with a Lawyer today as strict time limits apply
Contact us, The Personal Injury Lawyers to find out what your rights and entitlements are. You can also chat live with us, or email us and we'll contact you. Remember, strict time limits apply to claims for most injury compensation in Queensland.
Get our accredited Lawyers to assess your claim for free. Get in touch today
If you have been injured as a result of any vehicle such as car, bike or boat accident, or whilst at work, on holiday, or in many other situations you believe was caused by someone else's wrongful act or negligence, you may be entitled to compensation. Even if you think your actions may have contributed to your injury, you may still have a claim well-worth pursuing. Chat, call, email, or let us assess your claim, just press the button below. There is no cost, and no obligation.