Criminal Compensation is not included in taxable income...

From the Centrelink Compensation Kit (online)

What is not included as compensation?
Compensation payments, from income replacement, sporting injury and personal sickness or accident insurance policies, are not treated as compensation if the recipient has contributed to the premium and the insurer has not reduced the policy payments by any Centrelink payments that the person has received (or may be entitled to receive). Statutory criminal injury compensation payments, payments to dependents for the death of a person, unlawful dismissal payments, anti-discrimination payments, and payments for natural disasters are also not treated as compensation.
Other exemptions include:
? Special Rate Disability Pension safety net payment under the Military Rehabilitation and Compensation Act 2004
? personal care payments made by the Tasmanian Motor Accident Insurance Board Future Care Support Scheme and by the Victorian Transport Accident Commission Attendant Care Service and Post Acute Support schemes
? regular payments made for loss of Defence Force Reserve wages because of injuries caused by activities in the Defence Force Reserves.
Some of these payments are counted under the normal income and assets test while others are not. If a person is receiving one of these payments, they should contact Centrelink to check how their Centrelink payments will be affected.