Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-1 - ASSESSABLE INCOME  

Division 20 - Amounts included to reverse the effect of past deductions  

Subdivision 20-A - Insurance, indemnity or other recoupment for deductible expenses  

What is an assessable recoupment ?

SECTION 20-25   What is recoupment ?  

General

20-25(1)    
Recoupment of a loss or outgoing includes:

(a) any kind of recoupment, reimbursement, refund, insurance, indemnity or recovery, however described; and

(b) a grant in respect of the loss or outgoing.

Amount paid for you

20-25(2)    
If some other entity pays an amount for you in respect of a loss or outgoing that you incur, you are taken to receive the amount as recoupment of the loss or outgoing.

Remission of general interest charge or shortfall interest charge

20-25(2A)    

If:

(a) you have incurred expenditure that consists of ^* general interest charge or ^* shortfall interest charge; and

(b) the Commissioner remits any of that charge;

then you are taken to receive the remitted amount as recoupment of that expenditure.

Amount for disposing of right to recoupment

20-25(3)    
If you dispose of your right to receive an amount as ^* recoupment of a loss or outgoing you are taken to receive as recoupment of the loss or outgoing any amount you receive for disposing of that right. (The disposal need not be to another entity.)

Amount received that is recoupment to an unspecified extent

20-25(4)    
If you receive an amount that is, to an unspecified extent, ^* recoupment of a loss or outgoing, the amount is taken to be recoupment of the loss or outgoing to whatever extent is reasonable.

Balancing adjustments not covered

20-25(5)    
If a balancing adjustment is required for property on which you incurred a loss or outgoing, no part of the ^* termination value of the property is an amount you receive as recoupment of the loss or outgoing.

Note:

The termination value is usually the amount you receive because of disposal, loss or destruction of the property.