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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 order is made 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 (see Structured settlements – examples).

    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 need to declare these payments as 'other income' on your tax return.

    Discounted shares under employee share schemes

    You must declare the discount amount you receive on employee share scheme (ESS) interests as assessable income in your tax return. The discount amount refers to the difference between the market value of the ESS interests and the amount you paid to acquire them.

    Employee share schemes give employees a benefit such as:

    • shares in the company they work for at a discounted price
    • the opportunity to buy shares in the company in the future (this is called a right or option).

    See also:

    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 win 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.

    See also:

    Income from rendering personal services

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

    The income is assessable in the year you receive them.

    See also:

    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: 22 Oct 2019QC 31968