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INCOME TAX ASSESSMENT ACT 1997 - SECT 118.37

Compensation, damages etc.

             (1)  A * capital gain or * capital loss you make from a * CGT event relating directly to any of these is disregarded:

                     (a)  compensation or damages you receive for:

                              (i)  any wrong or injury you suffer in your occupation; or

                             (ii)  any wrong, injury or illness you or your * relative suffers personally;

                     (b)  compensation or damages you receive as the trustee of a trust (other than a trust that is a * complying superannuation entity) for:

                              (i)  any wrong or injury a beneficiary of the trust suffers in his or her occupation; or

                             (ii)  any wrong, injury or illness a beneficiary of the trust, or the beneficiary's relative, suffers personally;

                   (ba)  a * CGT asset you receive, as a beneficiary of a trust, from the trustee of the trust to the extent that the CGT asset is attributable to compensation or damages that the trustee receives as described in paragraph (b) for:

                              (i)  any wrong or injury you suffer in your occupation; or

                             (ii)  any wrong, injury or illness you or your relative suffers personally;

                     (c)  gambling, a game or a competition with prizes;

                     (g)  a tobacco industry exit grant that you receive under the program known as the Tobacco Growers Adjustment Assistance Programme 2006 if, as a condition of receiving the grant, you entered into an undertaking not to become the owner or operator of any agricultural * enterprise within 5 years after receiving the grant;

                    (ga)  a * water entitlement, to the extent that the CGT event happens because an entity * derives a * SRWUIP payment that is * non-assessable non-exempt income under section 59- 65;

                   (gb)  a * SRWUIP payment you derive that is non-assessable non-exempt income under section 59- 65;

                     (h)  a right or entitlement to a * tax offset, a * deduction, or a similar benefit under an * Australian law, a * foreign law or a law of part of a foreign country;

                      (i)  a variation, transfer or revocation of an allocation (within the meaning of the National Rental Affordability Scheme Act 2008 );

                      (j)  anything of economic value provided to you (whether directly or indirectly, such as through an * NRAS consortium of which you are a * member) by:

                              (i)  a Department of a State or Territory; or

                             (ii)  a body (whether incorporated or not) established for a public purpose by or under a law of a State or Territory;

                            in relation to your participation in the * National Rental Affordability Scheme.

             (2)  A * capital gain or * capital loss is disregarded if you make it as a result of receiving a payment or property as reimbursement or payment of your expenses, or receiving or using a voucher or certificate, under:

                     (a)  a scheme established by an * Australian government agency, a * local governing body or a * foreign government agency under an enactment or an instrument of a legislative character; or

                     (b)  the General Practice Rural Incentives Program or the Rural and Remote General Practice Program; or

                     (c)  the Sydney Aircraft Noise Insulation Project; or

                     (d)  the M4/M5 Cashback Scheme; or

                     (e)  the Unlawful Termination Assistance Scheme or the Alternative Dispute Resolution Assistance Scheme.

             (3)  A * capital gain you make from compensation you receive under the * firearms surrender arrangements is disregarded.

             (4)  A * capital gain or * capital loss you make from a payment you receive is disregarded if:

                     (a)  you are an Australian resident; and

                     (b)  you receive the payment:

                              (i)  under the program known as the "German Forced Labour Compensation Programme"; and

                             (ii)  from the Foundation known as "Remembrance, Responsibility and Future" or any of the Foundation's partner organisations; and

                     (c)  the payment is in the nature of compensation for:

                              (i)  any wrong or injury; or

                             (ii)  any loss of, or damage to, property;

                            that you, or another person, suffered as a result of injustices committed during the National Socialist period.

             (5)  A * capital gain or * capital loss you make as a result of receiving a payment or property is disregarded if:

                     (a)  you are an individual who is an Australian resident; and

                     (b)  you receive the payment or property from a source in a foreign country; and

                     (c)  you do not receive the payment or property directly or indirectly from an * associate of yours; and

                     (d)  the payment or property you receive is in connection with:

                              (i)  any wrong or injury; or

                             (ii)  any loss of, or damage to, property; or

                            (iii)  any other detriment;

                            that you, or another individual, suffered as a result of:

                            (iv)  persecution by the National Socialist regime of Germany during the National Socialist period; or

                             (v)  persecution by any other enemy of the Commonwealth during the Second World War; or

                            (vi)  persecution by an enemy-associated regime during the Second World War; or

                           (vii)  flight from persecution mentioned in subparagraph (iv), (v) or (vi); or

                          (viii)  participation in a resistance movement during the Second World War against forces of the National Socialist regime of Germany; or

                            (ix)  participation in a resistance movement during the Second World War against forces of any other enemy of the Commonwealth.

             (6)  For the purposes of subsection (5), the duration of the Second World War includes:

                     (a)  the period immediately before the Second World War; and

                     (b)  the period immediately after the Second World War.

             (7)  For the purposes of subsection (5), a regime is an enemy-associated regime if, and only if, it was:

                     (a)  in alliance with; or

                     (b)  occupied by; or

                     (c)  effectively controlled by; or

                     (d)  under duress from; or

                     (e)  surrounded by;

either or both of the following:

                      (f)  the National Socialist regime of Germany;

                     (g)  any other enemy of the Commonwealth.

             (8)  Subsection (5) applies to a payment or property received by the * legal personal representative of an individual in a corresponding way to the way in which that subsection would have applied if the payment or property had been received by the individual.

             (9)  Subsection (5) applies to a payment or property received by:

                     (a)  the * legal personal representative of a deceased individual; or

                     (b)  the trustee of a trust established by the will of a deceased individual;

in a corresponding way to the way in which that subsection would have applied if:

                     (c)  the individual had not died; and

                     (d)  the payment or property had been received by the individual.



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