Helen is 68 years old and single. Three years ago (when she was 65) she purchased a lifetime annuity for a lump sum of $1 million (not through her superannuation) that will give her an income of $60,000 a year for the rest of her life. The annuity has no guaranteed minimum annuity period and no amount payable to her estate upon her death. Assume that according to the government actuarial tables, a 65- year- old female has a life expectancy of 89.

How would Helen’s $60,000 receipt be treated for income tax purposes?