Document ID: chunk:federal_register_of_legislation:C2025C00029:section:10:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 10 (pt 2/8)
Character Range: 294663–297291

20‑20  Assessable recoupments

Exclusion
 (1) An amount is not an assessable recoupment to the extent that it is *ordinary income, or it is *statutory income because of a provision outside this Subdivision.

Insurance or indemnity
 (2) An amount you have received as *recoupment of a loss or outgoing is an assessable recoupment if:
 (a) you received the amount by way of insurance or indemnity; and
 (b) you can deduct an amount for the loss or outgoing for the *current year, or you have deducted or can deduct an amount for it for an earlier income year, under any provision of this Act.

Other recoupment
 (3) An amount you have received as *recoupment of a loss or outgoing (except by way of insurance or indemnity) is an assessable recoupment if:
 (a) you can deduct an amount for the loss or outgoing for the *current year; or
 (b) you have deducted or can deduct an amount for the loss or outgoing for an earlier income year;
under a provision listed in section 20‑30.

20‑25  What is recoupment?

General
 (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
 (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
 (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
 (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
 (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
 (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