While the compensation amount itself isn’t taxable, in the sense that a lump sum isn’t taxed, anything that you may use this money for in the future will be taxed at the usual rates.
This means that if you put the money into a high-interest savings account, any interest you earn is considered income and is taxed.
Similarly, if you purchase an investment home or apartment with the compensation amount and then sell it in the future, any money you make from this purchase will incur capital gains tax.
Disclaimer: This information is designed for general information in relation to Queensland compensation law. It does not constitute legal advice. We strongly recommend you seek legal advice in regards to your specific situation. For help understanding your rights, please call 1800 960 482 or request a free case review to talk to one of our lawyers today.
