Private ruling: Assessable income - interest
Date of advice: 21 April 2026
Published: 13 July 2026
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the interest income earned on monies deposited into the Term Deposit account (x000) be assessable income to you under section 6-5 of the Income Tax Assessment Act 1997 ( ITAA 1997). | A1: Yes. Having considered your circumstances and the relevant factors, we accept the beneficial owner of the settlement monies differs from the legal ownership of the Term deposit. The Commissioner is satisfied that you are the beneficial owner of the Term Deposit monies during the relevant period. Accordingly, the income derived from those monies during that period is solely assessable to you and is not assessable to Person B. Further information on who should be assessed to interest on bank accounts can be found in Taxation Determination TD 2017/11 Income tax: who should be assessed to interest on bank accounts?

Relevant facts and circumstances: You and Person B are married. You and Person B hold joint bank accounts with the Bank. On DD MM 20XX, you received a trust distribution representing 100% of the net proceeds from the sale of the Property, as a beneficiary of the Trust, which is evidenced by the Trust's distribution minutes and the Trust's 20XX income tax return. The capital gain arising from the sale of the Property was solely attributable to you and was reported in your 20XX income tax return. On DD MM 20XX, a Term Deposit (Term Deposit No.x000) for $0 was established with the Bank for a period of X months, with interest payable on maturity, using the sale monies. The Term Deposit was established on the Bank's online banking platform, using Person B's customer access number, with the account designation 'You'. However, due to the way the Term Deposit was established, using Person B's customer access number, it was treated by the Bank as being held by Person B. The funds used to establish the Term Deposit were provided solely by you. Your tax file number (TFN) was provided to the Bank in connection with the establishment of the Term Deposit. Due to the way the Term Deposit was established it was treated by the Bank as being held by solely by you. On DD MM 20XX, the Term Deposit matured and the interest was paid into the jointly held bank account. Correspondence from the Bank was addressed to both of you. As a result, it was not apparent to you that the deposit was held in Person B's name only. You became aware of the error when your accountant began preparing your 20XX income year tax return. For the year ended 30 June 20XX, the Bank reported the interest income under Person B's TFN, and the amount was pre-filled in Person B's income tax return. The funds have since been reinvested in a term deposit established in your name only. Assumption You will return 100% of the interest income for the Term deposit account (x000) year ending 30 June 20XX

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5