Dictionary

Statutory income

For tax purposes, a person’s assessable income is the sum of their ordinary income (that is, income derived directly or indirectly from all sources in or out of Australia) and statutory income.

Statutory income comprises all amounts other than ordinary income that is included in your assessable income by statute provisions. 

Section 10.5 of the Income Tax Assessment Act 1997 (Cth) provides a list of statutory income that includes:

  • Net capital gain for the financial year
  • Dividends
  • Franking credits
  • Payments received for the assignment, conveyance, transfer or disposal of any property
  • Car expense reimbursements provided to an employee in respect of their employment 
  • Excessive payments that are either remuneration or retirement allowance from a private company to its shareholders, directors and associates