On 28 July 2022, Gareth deposited $30,000 in a six-month term deposit with Macquarie Bank paying 4% p.a. interest. Rather than receiving the interest on the maturity of the term deposit on 28 January 2023, Gareth elected to roll over the interest of $600 together with the principal of $30,000 for a further six months to mature on 28 July 2023. Gareth estimates that approximately $510 in interest would be accruing on this new term deposit from 28January 2023 to 30 June 2023.

Macquarie Bank term deposit (gross interest) $1,110

Is this an assessable income?

Reasons and evidence? (what section in Australia law)

Answer rating: 100% (QA)

In Australia interest income earned from term deposits is generally considered assessable income and ... View the full answer