Private ruling: Interest income
Date of advice: 31 October 2025
Published: 15 December 2025
Ruling period: Year ended 30 June 20XX
Date scheme commenced: XX XX 20XX

Ruling: Q1: Is it correct to include a percentage of the interest income accrued up to the date of death of Person B in my individual tax return and the remaining interest income accrued from XX/X/20XX to XX/X/20XX be a percentage included in my tax return? | A1: No Interest income is declared in the year it is credited or received. For X deposits this means you should declare interest in the year the investment matures. Under the Right of survivorship the interest for the X deposits was received, on maturity, by you as the surviving account holder. You became the sole owner of the X deposits on the XX X 20XX under the Right of survivorship. The interest from the X deposits was credited on XX X 20XX. Consequently, you will need to declare all the interest from each X deposits in your taxation return for the year ended 30 June 20XX.

Relevant facts and circumstances: You and Person B took out X Deposits in both your names. The X Deposits were for X months. Interest on the X deposits were paid at maturity. Person B passed away before the term deposits matured. The X deposit balances, and interest were paid to your joint bank account under Right of Survivorship. You provided copies of Certificate of Investment X Deposit for each X deposits. The bank confirmed over the phone X deposits a and b on the bank system had a box ticked stating 'Funds are to be paid to the surviving account holder.' X deposit C was rolled over from an older X deposit with a different account number. Bank said this information of the older X deposit was not recorded on the Bank system. Bank sated over the phone it was assumed you had Right of Survivorship for X deposit. You provided an email from the XXX Deceased Estates for the Bank which states '....... We confirm all accounts were nominated - Funds are to be paid to the surviving account holder.'

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