Computer Geeks Pty Ltd (CG) is in the business of leasing and selling hi-tech computers and related software. In January 2023, CG entered into a contract with ABC Ltd, a computer retailer, to supply a number of high-tech computers over a period of two years. The agreement provided for a fixed price on each computer sold within the two-year period, and also for a free warranty period of 24 months. However, due to a change in tariff regulations in November 2023, the price of CG computers increased by an average of 20%. As a result, CG indicated that it wished to terminate the agreement from 1 December 2023. The termination of the agreement forced ABC to purchase other computers from another supplier at a higher price. ABC commenced an action for damages of $1,500,000, being compensation for the increased cost of having to buy its computers and software elsewhere and for the fact that the software of the old computers was not compatible with the new computers which ABC had acquired. The action by ABC was discontinued when CG paid ABC $1,000,000 on 10 March 2024 in full settlement of all claims against it. Required: Advise ABC as to whether the amount received as compensation constitutes assessable income, for the 2023-24 tax year, citing relevant legislation and case law to support your answer. Please ignore any CGT implications.