On discussing Solar Panels at work one day a colleague told me the credits he receives from his solar system are classed as income (he didn't know this beforehand), his point was just to be aware of the fact so as not to put yourself into another tax bracket.
Is this actually true?
I think they would generally not be classed as income, unless you are connecting investment properties or doing it as a business.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
But, see this
http://law.ato.gov.au/atolaw/view.htm?docid=TXD/TD200631/NAT/ATO/00001
TD 2006/31
Income tax: is a government rebate received by a rental property owner an assessable recoupment under subsection 20-20(3) of the Income Tax Assessment Act 1997 , where the owner is not carrying on a property rental business and receives the rebate for the purchase of a depreciating asset (for example an energy saving appliance) for use in the rental propertyTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
TO Interpretative Decision
ATO ID 2002/627
Income Tax
Income – Photovoltaic Rebate»
http://law.ato.gov.au/atolaw/view.htm?rank=find&criteria=AND~solar~basic~exact:::AND~rebate~basic~exact&target=JA&style=java&sdocid=AID/AID2002627/00001&recStart=1&PiT=99991231235958&Archived=false&recnum=1&tot=7&pn=ALL:::ALLIs a «rebate» received under the Commonwealth Photovoltaic «Rebate» Program, assessable income under section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Decision
No. The «rebate» received under the Commonwealth Photovoltaic «Rebate» Program is not assessable income under section 6-5 of the ITAA 1997.
Facts
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thank you Terryw,
That explains the government rebate but not the credits received from your energy supplier for your power savings.Any ideas there?
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