06 Feb 1313 Loss of pilot licence payments were ETPs - Purvis
The AAT has held that payments, titled "loss of licence" (LOL) payments, received by 3 former airline pilots employed by Qantas Airways Limited were employment termination payments (ETPs) under Div 82 of ITAA 1997.
Each of the taxpayers suffered a medical condition that resulted in the cancellation of their licence by CASA and they received a LOL Payment pursuant to an insurance policy. Their employment with Qantas was terminated at the same time. The taxpayers' argument that the payments were exempt capital payments for, or in respect of, personal injury under s 82-135 of ITAA 1997 was rejected.
Purvis and Ors and FCT  AATA 58 (AAT, Dunne SM, 4 February 2013).