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  • Other income

    You may earn or receive income from other sources, you also need to declare these amounts as income in your tax return. Other income you need to declare includes the following:

    Compensation and insurance payments

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

    You may receive compensation, if you've made a personal injury claim and either:

    • you agree to a settlement
    • a court order is made in your favour.

    You may receive this in the form of a lump sum payment, structural (periodic) payments or both. Such payments are tax-free, if certain conditions are met (see Structured settlements – examples).

    You don't include payments made to you under an income protection, sickness or accident insurance policy where both:

    • the premiums are deductible
    • the payments replace your income, if
      • tax has already been withheld
      • you include these payments in your tax return.

    As the policyholder, you must check whether tax has been withheld from payments made to you under an income protection, sickness or accident insurance policy.

    Tax is not withheld from payments the insurer pays directly to the owner of a relevant policy. If tax has not already been withheld, you will need to declare these payments as 'other income' in your tax return.

    See also:

    Prizes and awards

    You must declare in your tax return the value of any prizes or benefits you receive from a prize draw or lottery run by your:

    • bank
    • building society
    • credit union
    • investment body.

    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 win prizes as a game show contestant, you only declare prizes you win if you receive regular appearance fees or game-show winnings.

    If you sell or otherwise dispose of an asset that was a prize from a lottery, you must declare any capital gains you make in your tax return.

    See also:

    Income from rendering personal services

    You must include amounts you receive for providing personal services outside of employment or in a non-business capacity. Include these amounts as income in your tax return. For example, working in the sharing economy may produce assessable income.

    Other amounts may also be assessable income. For example, recurring or one-off grants received from a government under a contract to provide your services over a given period.

    The income is assessable in the year you receive them.

    See also:

    ATO interest – remissions or recoupments

    You must declare as income in your tax return any amount of interest we impose if both of the following apply:

    • the interest is remitted or recouped
    • you have or can claim a deduction for that interest.

    See also:

    Last modified: 08 Jun 2021QC 31968