What Is Statutory Income Australia

If a receipt is classed as both ordinary income and statutory income the statutory rule prevails.

What is statutory income australia. Salary and wages income from property eg. Thus amounts derived in similar circumstances would be included in assessable income via the statutory income provisions. Statutory income are amounts outside the ordinary concepts of income that have been specifically included in assessable income. Statutory income is income that is not ordinary income and that you include in assessable income because of a specific rule in the tax law.

It is derived form specific sections. Section 10 5 of itaa 1997 accessible from the ato website includes a table which specifies the sections which include statutory income in assessable income. If an amount is not ordinary income it may be statutory income. Examples of statutory income include capital gains dividends and franking credits any allowances and redundancy payments see section 10 5 of the income tax assessment act 1997 cth.

Statutory income is an amount the law specifically includes in assessable income for example section 160zo of the income tax assessment act 1936 includes net capital gains in assessable income. There is generally considered to be three components of ordinary income. S6 5 commission receivedstatutory income statutory income are amounts outside the ordinary concepts of income that have been specifically included in assessable income. The two statutes under which income tax is calculated are the income tax assessment act 1936 and the income tax assessment act 1997.

All information contained in this publication is summarized by kpmg australia pty limited the australian member firm affiliated with kpmg international cooperative kpmg international a swiss entity based on the australian income tax rates act 1986 superannuation guarantee charge act 1992 and the superannuation guarantee administration act 1992 medicare levy act 1986 and income. Statutory income referring to all amounts that are not ordinary income but are included in your assessable income by way of a specific rule in tax law. Strict accounting standards apply and the figures are subject to independent audit. They include all items and costs that impact profit income statement financial position balance sheet and cash flow cash flow statement.

Taxable income is the difference between assessable income and allowable deductions. If an amount is included by such a provision and is not ordinary income the amount is statutory income subclause 6 10 2. The former is gradually being re written into the latter. For example a net capital gain is statutory income.