Show download pdf controls
  • Section 4 - Explanation of terms used in this part



    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention
    Meaning of passive income

    Passive income includes all dividends. The term dividend includes:

    • unit trust dividends received from a corporate unit trust or a public trading trust
    • a distribution made by a liquidator which is deemed to be a dividend.
    Interest income

    Passive income includes tainted interest income, which is all interest income except for interest derived through an offshore banking unit. It also specifically includes:

    • amounts in the nature of interest - for example, discounts
    • income earned from hire purchase and other property financing transactions
    • accrued interest on discounted and other deferred interest securities issued after 16 December 1984
    • interest deemed to be derived where a CFC assumes the rights of a lender through the purchase of securities through a secondary market
    • factoring income.
    Last modified: 05 Dec 2006QC 18000