Does Workers Compensation Count As Income?

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Payments of compensation made in accordance with the applicable workers’ compensation schemes in Victoria and NSW are not subject to payroll tax. This is the case whether or not the payment to the worker is made by the employer or the insurer.

Do I get taxed on compensation?

Claimants do not pay tax on injury compensation

If you receive financial compensation following an injury, specific legislation ensures that you do not have to pay tax on it. This is the case whether a compensation settlement is received as a lump sum or in staggered payments.

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What is not counted as income?

The following definitions of “Income Not Counted” include other sources of income. that would not be included the components of Adjusted Gross Income (AGI) reported. for tax purposes unless otherwise noted: Inheritances and Gifts (Taxed to Estate or Giver if not Under Limits for Exemption)

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