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  • Other income

    Other income you need to declare on your tax return includes:

    Compensation and insurance payments

    You must declare any amounts you received for lost salary or wages under an income protection, sickness or accident insurance policy or workers compensation scheme.

    If you've made a personal injury claim and you agree to a settlement, or a court orders in your favour, you may receive compensation in the form of a lump sum payment, structural (periodic) payments (or both). Such payments are tax-free, provided certain conditions are met.

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    You don't include payments made to you under an income protection, sickness or accident insurance policy (where the premiums are deductible and the payments replaced income) if:

    • tax has already been withheld
    • you've already included them on your tax return.

    You must check whether tax has been withheld from payments made to you under an income protection, sickness or accident insurance policy that you own as a policyholder. Tax is not withheld from payments made by an insurer directly to the owner of a relevant policy. If tax has not already been withheld, you will be required to declare these payments as 'other income' on your tax return.

    Prizes and awards

    If you've won something in a prize draw or lottery run by your bank, building society, credit union or other investment body, you must declare on your tax return the value of any benefits or prizes you received. Prizes may include cash, low-interest or interest-free loans, holidays or cars.

    However, you don't need to declare prizes won in ordinary lotteries such as lotto draws and raffles.

    If you've been a game show contestant, you only declare prizes you won if you regularly receive appearance fees or game-show winnings.

    If you sell or otherwise dispose of an asset that was a prize from a lottery, you may make a capital gain, which must be declared on your tax return.

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    Income from rendering personal services

    Amounts you receive for rendering personal services outside of employment or in a non-business capacity are still included in your assessable income.

    For example, recurring or one off grants received from a government under a contract to provide your services over a specified period.

    The income is assessable in the year you receive them.

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    ATO interest – remissions or recoupments

    You must declare any amount of interest we impose that is remitted or recouped, if you have or can claim a deduction for that interest.

    See also:

    Last modified: 25 Jun 2019QC 31968