This parliamentary question concerns the impact of an Australian Taxation Office (ATO) ruling on the taxation of lump sum workers' compensation settlements in Western Australia, specifically regarding when the Minister was briefed, impact assessments, stakeholder representations, and government engagement with the ATO.

AnsweredQoN 190Legislative Council
Asked
18 March 2026
Portfolio
Industrial Relations

QuestionView source ↗

Workers compensation—Australian Taxation Office ruling
190. Hon Nick Goiran to
the minister representing the Minister for Industrial
Relations:
I refer to the
Australian Taxation Office Class Ruling CR 2025/88 concerning the taxation
treatment of lump sum settlements under the Workers
Compensation and Injury Management Act 2023 .
(1) When was the minister first briefed
that this ruling would apply to settlements made under the Western Australian
scheme from 1 July 2024?
(2) Has the government undertaken an
assessment of the impact of this ruling on injured workers who redeem weekly
compensation through a lump sum settlement?
(3) Has the government received any
representations from workers, insurers or the legal profession regarding delays
to settlements or adverse taxation consequences arising from the ruling?
(4) Has the government raised this issue
with the Australian Taxation Office or the Commonwealth government?
(5) If yes to (2), (3) or (4), on what
dates did those assessments, representations or discussions occur?

AnswerView source ↗

I thank the Leader of the
Opposition for some notice of the question. The following response has been
provided by the Minister for Industrial Relations.
(1) On 17 December 2025.
(2) WorkCover WA is monitoring this issue
and has been working closely with the insurance industry and is engaging with
the ATO to seek further clarity on potential impacts to workers.
(3) Yes.
(4)–(5) WorkCover WA is continuing to engage with
the ATO on this matter since late 2025 to present.

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