Assessable income

Many amounts received by your organisation will be assessable income. Assessable income is any amount that is:

• ordinary income (income from rendering personal services, income from property and income from carrying on trading activities)
• an amount specified under income tax law as income
• not an amount specified under income tax law as exempt income or non-assessable, non-exempt income.

Assessable income includes receipts from trading with non-members and income from sources outside the organisation.

Receipts that are assessable income include:

• bank interest
• dividends and other income from investments (for example, interest from term deposits and rent from an investment property)
• the annual total of more than $300 of non-cash benefits (property or services) received in payment for goods and services provided by the organisation
• fees received for advertising in the organisation's magazine
• employee contributions that reduce the organisation's fringe benefits tax (FBT) liability
• sponsorships and certain grants
• proceeds from fundraising drives to the public (for example, the sale of lamingtons, cakes or chocolates)
• food and drinks sold to non-members visiting the organisation
• fees received for hiring out the organisation's hall, facilities or equipment to the public
• fees received for the organisation's catering services at functions for the public
• commissions received from vending machines
• amounts non-members pay to attend dinners, parties, dances or social functions arranged by the organisation
• amounts non-members pay to attend a talk, presentation or workshop arranged by the organisation
• non-member proceeds from a raffle
• proceeds from selling souvenirs to non-members
• gaming income derived by the organisation from non-members where the organisation owns and operates the gaming machines
• gaming income derived by the organisation under arrangements entered into with an external gaming or Keno operator.

Find out about:

• Income and deductions for business – for more examples of assessable income.
• Other issues – for the disposal of an asset may result in a capital gain or loss to an organisation.
• Classifying expenses – if your organisation uses a depreciable asset for a taxable purpose, the disposal of the asset may also result in an amount to be treated as assessable income or a deduction.