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Edited version of private advice
Authorisation Number: 1052372375530
Date of advice: 12 March 2025
Ruling
Subject: Interest income
Question
Are you able to declare a percentage of the interest amount which was earned on the sale proceeds of your home in your bank account?
Answer
Yes.
Based on the information provided to the Commissioner you only have a beneficial ownership interest in a portion of the assessable interest.
The interest was earned on the amount in your bank account which represented the sale proceeds of your home.
You owned this home jointly with your spouse.
You and your spouse purchased another property with the proceeds of the sale of your home.
A portion of the interest amount belongs to your spouse.
You are only required to declare an amount of interest equal to your beneficial ownership in the relevant tax return.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
You and your spouse owned the property jointly.
You and your spouse sold the property.
The proceeds from the sale of the property were placed into your bank account.
You derived interest on the sale proceeds.
You and your spouse then purchased another home as you were downsizing.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 6-5