1.1.C.50 Compensation
Definition
Compensation is a payment that is made wholly or partly in respect of lost earnings or lost capacity to earn, whether paid as a lump sum or periodic payments, either within or outside Australia (1.1.A.120).
Compensation is not identified separately by the FA income test. Any taxable component of a compensation amount is included in the individual's (1.1.I.90) taxable income (1.1.T.20) and is therefore assessable for FA purposes. Non-taxable compensation is not assessed under the FA income test.
Act reference: SSAct section 17(2) Compensation