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What income is not taxable in Australia?

In Australia, not all types of income are taxable.

Types of Non-Taxable Income in Australia

1. Gifts and Inheritances: Gifts and inheritances received by individuals are generally not taxable in Australia. However, any income earned from investing or using the gift or inheritance may be taxable.

2. Certain Government Payments: Some government payments, such as certain Centrelink payments (like Family Tax Benefit and Child Care Subsidy), certain disaster relief payments, and certain veteran payments, are not taxable.

3. Compensation for Personal Injury or Wrongful Acts: Compensation received for personal injury or for wrongful acts (like defamation or discrimination) is generally not taxable.

4. Certain Scholarships and Grants: Scholarships, bursaries, and grants that are specifically exempt from income tax under Australian tax law are not taxable. However, this can depend on the nature of the scholarship or grant and its purpose.

5. Some Insurance Payments: Certain insurance payments, such as those received for damage to personal property (not for business purposes), are not taxable.

6. Superannuation Lump Sums for Individuals Over Preservation Age: Superannuation lump sums received by individuals who have reached their preservation age and meet certain conditions may be tax-free or subject to concessional tax treatment.

It's important to note that tax laws can be complex, and the tax treatment of income can vary based on individual circumstances and changes in legislation. If you have specific income sources or situations that you're unsure about, consulting with a registered tax agent or the Australian Taxation Office (ATO) can provide personalized advice.

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Law Firm's Insights
28 September 2020
Queensland
Thomson Geer
WILLIAMS
Highlights
Defective Work [20] The contract provides that any “defective work” will be corrected by the party incurring the cost and without any deduction from the amount payable to the other party. [21] The relevant provisions are as follows:“1. If either party incurs costs in connexion with, or in an attempt to remedy, any defect in the work performed by the other party, then without prejudice to any other rights it may have, that party shall be entitled to recover those costs from the other party without any deduction therefrom. 2. If any defect in the work is not remedied within a reasonable time after notification by either party of its intention to do so, then that party shall be entitled, where such delay has caused loss or damage, to have that loss or damage fully compensated by the other party.” Defective Work [22] The contract also provides that where “defective work” is carried out by either party then that party is not entitled to recover for such defective work any costs whatsoever including but not limited to wages, materials or damages whatsoever. [24] The issue in dispute is whether the installation of an air conditioning system constituted defective work within the meaning of clause 1 of the General Conditions of the Contract.Mechanical Services Specification and Mechanical Services Preliminary Design Drawings [25] The Mechanical Services Specification and Mechanical Services Preliminary Design Drawings were prepared by Pro-Invest and provide specific requirements for an air conditioning system to be installed at the Spring Hill Hotel. [26] It is clear from these documents that an air conditioning system was required and that failure to install such a system would result in a breach of contract. [27] Pro-Invest contends that because the air conditioning system was not installed according to specifications provided in the Mechanical Services Specification and Mechanical Services Preliminary Design Drawings, this constituted defective work within the meaning of clause 1 of the General Conditions of the Contract. Defective Work [28] Pro-Invest argues that because there was a failure to install an air conditioning system according to specifications provided in the Mechanical Services Specification and Mechanical Services Preliminary Design Drawings, this constituted defective work within the meaning of clause 1 of the General Conditions of the Contract. Air Conditioning System [29] It is also arguable that because there was a failure to install an air conditioning system according to specifications provided inthe Mechanical Services Specification and Mechanical Services Preliminary
Judgment
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