4.12.7.60 Assessment of Other Income from a Private Trust or Private Company
Date of effect
This topic has effect to private trusts and private companies from 1 January 2002.
In this topic
This topic contains the following information:
- the basis of assessment of income, and
- a summary of assessable income.
Basis of assessment of income
The assessment of income, apart from attributable income and distributions, received by an income support recipient from a private trust or a private company, is based on the types and current rate of income.
Summary of assessable income
The following table summarises the assessable income (other than attributable income and distributions) for an income support recipient involved in a private trust or a private company.
| Type of Income | Treatment | Policy reference |
|---|---|---|
| Wages, salaries, stipends, honoraria and directors fees. | Assess the current rate received. Discontinue the assessment if salary or wages cease. | 4.3.1 Income rates & definitions |
| Royalties. | Assess as ordinary income. | 4.3.9.50 Income from gifts, legacies, royalties & native title claims |
| Fees, commissions. | Assess as ordinary income. | 4.3.3.20 Income from employment or independent contracting |
| Salary packaging and fringe benefits. |
Assess as income. The non- grossed up amount of fringe benefits is assessed. Exception: The superannuation guarantee levy paid for an employee by a private trust or a private company is not assessed as income. |
4.3.3.60 Deferred income, salary sacrifice, valuable consideration & fringe benefits |
| Rent paid to the income support recipient. | Assess as rental income. | 4.3.8.30 Income from real estate |
Act reference: SSAct section 1073 Certain amounts taken to be received over 12 months, section 1075(3) If a person's ordinary income for a period…