INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 2 - Income  

Subdivision A - Assessable income generally  

SECTION 26  

26   CERTAIN ITEMS OF ASSESSABLE INCOME  
Subject to section 25B , the assessable income of a taxpayer shall include -

(a)    

(b)    

[Interest under will, etc]

beneficial interests in income derived under any will, settlement, deed of gift or instrument of trust, not being -


(i) amounts that are included in the assessable income of a beneficiary of a trust estate in pursuance of section 97 or 99B ; or

(ii) amounts in respect of which a trustee of a trust estate is assessed and liable to pay tax in pursuance of section 98 , 99 or 99A ; or

(iii) amounts on which ultimate beneficiary non-disclosure tax is payable under Division 6D; and

(c)    

(d)    

(e)    

[Allowances in relation to employment]

the value to the taxpayer of all allowances, gratuities, compensations, benefits, bonuses and premiums allowed, given or granted to him in respect of, or for or in relation directly or indirectly to, any employment of or services rendered by him, whether so allowed, given or granted in money, goods, land, meals, sustenance, the use of premises or quarters or otherwise, not being -


(i) an eligible termination payment within the meaning of Subdivision AA;

(ii) an amount to which section 26AC or 26AD applies;

(iii) an amount that, under any provision of this Act, is deemed to be a dividend or non-share dividend paid to the recipient;

(iv) a fringe benefit within the meaning of the Fringe Benefits Tax Assessment Act 1986 ; or

(v) a benefit that, but for paragraph (g) of the definition of fringe benefit in subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986 , would be a fringe benefit within the meaning of that Act; and

(eaa)    

[Reimbursed car expense]

in a case where the taxpayer is provided with a benefit that, but for section 22 of the Fringe Benefits Tax Assessment Act 1986 , would be an expense payment fringe benefit within the meaning of that Act the amount of the reimbursement referred to in that section; and

(ea)    

[Rations and quarters as member of Defence Force]

the value to any taxpayer who is a member of the Defence Force of all allowances given or granted in respect of his service as such a member, whether so given or granted in money, goods, meals, sustenance, the use of premises or quarters, or otherwise, not being -


(i) a fringe benefit within the meaning of the Fringe Benefits Tax Assessment Act 1986 ; or

(ii) a benefit that, but for paragraph (g) of the definition of fringe benefit in subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986 , would be a fringe benefit within the meaning of that Act; and

(eb)    

[Return to work payments]

any amount paid to the taxpayer pursuant to an agreement, arrangement or understanding (whether formal or informal, whether express or implied and whether or not enforceable, or intended to be enforceable, by legal proceedings) that was entered into by any of the parties to the agreement, arrangement or understanding for the purpose, or for purposes that included the purpose, of achieving the result that the taxpayer would, or would, unless prevented by special circumstances, resume performing work for, or rendering services to, a person who is or was an employer of the taxpayer or to whom the taxpayer renders or rendered services, whether or not the amount is paid to the taxpayer by that person; and

(ec)    

[Accrued leave transfer payments]

an amount received by way of an accrued leave transfer payment; and

(f)    

[Royalty]

any amount received as or by way of royalty other than an amount that:


(i) but for the definition of royalty in subsection 6(1) would not be such an amount; and

(ii) is not income within the ordinary meaning of that expression; and

(g)    

[Bounty or subsidy]

any bounty or subsidy received in or in relation to the carrying on of a business (other than subsidy received under an agreement entered into under an Act relating to the search for petroleum), and such bounty or subsidy shall be deemed to be part of the proceeds of that business; and

(h)    

[Loan procurement fee]

the amount of any fee or commission received for procuring a loan of money; and

(i)    

[Bonus]

any amount received as or by way of bonus other than a reversionary bonus on a life assurance policy; and

(j)    

[Insurance or indemnity for trading loss]

any amount received by way of insurance or indemnity for or in respect of any loss:


(i) of trading stock which would have been taken into account in computing taxable income; or

(ii) of profit or income which would have been assessable income;

if the loss had not occurred, and any amount so received for or in respect of any loss or outgoing which is an allowable deduction; and

(ja)    

[Decimal currency compensation]

any amount received in pursuance of the Decimal Currency Board Act 1963-1965 in respect of trading stock; and

(jb)    

[Interest on overpayments of tax]

the amount of any interest payable to the taxpayer under the Taxation (Interest on Overpayments and Early Payments) Act 1983 , being interest that has been paid to the taxpayer or applied by the Commissioner in discharge or partial discharge of a liability of the taxpayer to the Commonwealth; and

(k)    

[Recovery of embezzlement, etc, loss]

any amount received by the taxpayer by way of insurance, indemnity, recoupment, recovery or reimbursement in respect of the whole or part of a loss that has been allowed or is allowable under section 71 as a deduction from the assessable income of the taxpayer of any year of income; and

(l)    

[Payment for non-compliance with covenant to repair]

any amount referred to in section 53AA received by a person who is or was the grantor, or a successor in title of the grantor, of a lease; and

(m)    

[Private health insurance incentive]

an amount paid under section 8-3 of the Private Health Insurance Incentives Act 1996 to a health fund (within the meaning of that Act).


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