Document ID: chunk:federal_register_of_legislation:C2025C00014:section:26aj:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 26AJ (pt 1/6)
Character Range: 222622–225182

26AJ  Investment‑related lottery winnings to be included in assessable income
 (1) If:
 (a) either:
 (i) a loan benefit is provided to a taxpayer, or to another person, in respect of a year of income (in this subsection called the current year of income); or
 (ii) an amount (other than loan principal) is paid or credited to a taxpayer, or to another person, during a year of income (in this subsection also called the current year of income); or
 (iii) other property or services are provided to a taxpayer, or to another person, during a year of income (in this subsection also called the current year of income); and
 (b) the making of a loan, the payment or crediting of the amount, or the provision of the property or services, as the case may be, is by way of winnings from:
 (i) betting (including pool betting); or
 (ii) a lottery or other form of gambling; or
 (iii) a game with prizes; and
 (c) the chance to participate in the betting, lottery, gambling or game (in this subsection called the betting chance) was provided:
 (i) wholly or partly in respect of an investment held by the taxpayer in or with a third person (who may be an associate of the taxpayer) (in this subsection called the investment body); or
 (ii) wholly or partly in relation directly or indirectly to such an investment; and
 (d) the betting, lottery, gambling or game was organised by, or on behalf of:
 (i) the investment body (either acting alone or together with one or more other persons); or
 (ii) an associate of the investment body (either acting alone or together with one or more other persons); and
 (e) if the recipient of the loan benefit, amount or property or services, as the case may be, is a person other than the taxpayer—either:
 (i) the other person is an associate of the taxpayer; or
 (ii) the loan benefit, amount or property or services, as the case may be, is provided under an arrangement to which the taxpayer, or an associate of the taxpayer, is a party; and
 (f) no part of the value of the betting chance is included in the assessable income of the taxpayer of any year of income; and
 (g) the provision of the betting chance is neither:
 (i) a fringe benefit; nor
 (ii) a benefit that, apart from paragraph (g) of the definition of fringe benefit in subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986, would be a fringe benefit;
then:
 (h) if subparagraph (a)(i) applies—the taxpayer's assessable income of the current year of income includes the amount (if any) by which the benchmark amount of interest in relation to the loan