---
title: "Leave the capital-gains character of Queensland compensation to the lawyer"
url: "https://ailawframework.com/practice/personal-injury-and-compensation/check-the-capital-gains-treatment-of-compensation-or-damages/queensland"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A21-DM20261023-5-QLD"
practice_area: "Personal Injury & Compensation (workers compensation, CTP/TAC, medical negligence)"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["QLD"]
last_reviewed: "2026-10-25"
---

# Leave the capital-gains character of Queensland compensation to the lawyer

> Record the compensation or damages the lawyer describes and state that no opened section of the Civil Liability Act decides its capital-gains character. Do not apply a tax exemption.

Canonical page: https://ailawframework.com/practice/personal-injury-and-compensation/check-the-capital-gains-treatment-of-compensation-or-damages/queensland  
Last reviewed: 2026-10-25

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Personal Injury & Compensation (workers compensation, CTP/TAC, medical negligence)](https://ailawframework.com/practice/personal-injury-and-compensation.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | Record the compensation or damages the lawyer describes and state that no opened section of the Civil Liability Act decides its capital-gains character. Do not apply a tax exemption. |
| What the lawyer must review | Do not decide the tax character from the Civil Liability Act sections in this note. The lawyer names any Commonwealth section Do not state a capital-gains exemption in this note. Wage and tax records stay in a firm-controlled tool. Check ASCR r 9, APP 11 and Privacy Act notification |
| Written for | Queensland |
| Applies to | [Check the capital gains treatment of compensation or damages](https://ailawframework.com/practice/personal-injury-and-compensation/check-the-capital-gains-treatment-of-compensation-or-damages.md) |

## Checking plan

**Verify against sources**

The Queensland limit is that the opened Civil Liability Act provisions do not decide the capital-gains character. The lawyer applies the Commonwealth section the lawyer names.

- What the AI does: Record the compensation or damages the lawyer describes and state that no opened section of the Civil Liability Act decides its capital-gains character. Do not apply a tax exemption.
- What the lawyer does: The lawyer decides the tax character and names the Commonwealth provision.
- Who reviews: Lawyer competent in this practice area
- Basis: Checked against the linked sources on 23 October 2026. Confirm the current instrument before reliance.

## Checks the lawyer makes

1. No opened section of the Civil Liability Act 2003 decides whether compensation or damages are disregarded for capital gains.
2. Section 5 still matters, because section 5(1) says the Act does not apply in deciding liability or awards where the harm is or includes an injury the section names. It does not decide the tax character.
3. The tool records the payment the lawyer describes. It does not say the payment is exempt, and it does not cite a Commonwealth section the lawyer has not named.
4. The official reprint is the instrument the lawyer confirms. Its header is current from 1 July 2024. Section text was read on AustLII.

## Notes

- Income Tax Assessment Act 1997 section 118-37 was not opened, so it is not restated.
- Wage, tax and care records stay in a firm-controlled tool. Apply ASCR r 9 and APP 11, and consider whether a breach is notifiable under the Privacy Act 1988 (Cth).

## Practical guide

Jurisdiction: Queensland personal injury compensation or damages, capital-gains character

**Deliverable**: A note that the opened Civil Liability Act provisions do not decide the capital-gains character, and that the lawyer will name the Commonwealth section.

**Inputs**

- The payment the lawyer describes
- Any Commonwealth section the lawyer names

**Example**: Illustrative example: The note says chapter 3 does not decide the tax character of the settlement sum the lawyer described. It does not say the sum is exempt.

**Stop and escalate when**

- The draft states a capital-gains exemption.
- The draft cites a tax section that was not opened and that the lawyer has not named.

Checked 2026-10-23.

## Sources

- [Civil Liability Act 2003 (Qld) section 5](https://www.austlii.edu.au/cgi-bin/viewdoc/au/legis/qld/consol_act/cla2003161/s5.html) (checked 2026-10-23)
- [Civil Liability Act 2003 (Qld), official reprint](https://www.legislation.qld.gov.au/view/html/inforce/current/act-2003-016) (checked 2026-10-23)

## Forms and precedents for this task

| Form or precedent | Kind | AI level | Summary |
| --- | --- | --- | --- |
| [Client checklist after a personal injury settlement](https://ailawframework.com/precedents/personal-injury-and-compensation/after-settlement-client-checklist.md) | Checklist | Yellow | What a client does after a personal injury settlement is signed: Medicare, Centrelink, the NDIS, tax, and money held for a child. It does not replace the notices sent before settlement. |

Signed-in accounts can read the full text of each one.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*