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LazyJean(Initiate)Initiate
16 Nov 2024

My bank has paid an my mother's estate bank account $3k for poor service. There was no financial loss - the bank just gave bad information and caused an immense amount of stress when I was executor for my mother's estate.

The ATO site refers to Compensation for inappropriate service but then only covers, loss on investment, advisor fees and interest. This payment has none of these. It is simply an apology.

Is this taxable income?

Thanks

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sydauthor(Master)Master
16 Nov 2024

Sounds like a form of redress by the bank


https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/income-you-must-declare/compensation-and-insurance-payments/redress-scheme-payments


Here are the other categories

https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/income-you-must-declare/compensation-and-insurance-payments



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Compensation from financial institution for poor service | ATO Community