Taxation Laws Amendment Act (No. 2) 2003 (65 of 2003)

Schedule 3   Amounts repaid are not assessable income

Income Tax Assessment Act 1997

4   Section 20-160 (link note)

Repeal the link note, substitute:

[The next Division is Division 22.]

Division 22 Amounts you must repay are not assessable income

Guide to Division 22

22-1 What this Division is about

Your assessable income does not include amounts you must repay in a later income year.

Table of sections

22-5 Amounts you must repay are not assessable income

[This is the end of the Guide.]

Operative provisions

22-5 Amounts you must repay are not assessable income

(1) An amount you receive is not assessable income, and is not *exempt income, for an income year if:

(a) you must repay it; and

(b) you repay it in a later income year; and

(c) you cannot deduct the repayment for any income year.

(2) It does not matter if:

(a) you received the amount as part of a larger amount; or

(b) the obligation to repay existed when you received the amount or it came into existence later.

(3) This section does not apply to an amount you must repay because you received a lump sum as compensation or damages for a wrong or injury you suffered in your occupation.

[The next Division is Division 25.]