EXEMPT INCOME AND NON-TAXABLE RECEIPTS

Course overview

The material develops a structured method for identifying exempt income, non-assessable non-exempt income, and amounts outside assessable income. It addresses government and veterans’ payments, personal receipts, hobbies, windfalls, foreign employment income, mutual dealings, gifts and superannuation lump sum thresholds for 2026–27.

The content is organised into four lessons, moving from statutory classification and government payments to NANE income, excluded receipts, personal activities, overseas earnings, mutuality and superannuation. Tables, scenarios, flowcharts, evidence prompts and the final assessment support practical application by tax and accounting professionals.

Course objectives

Explain the distinction between exempt income, non-assessable non-exempt income and amounts outside assessable income.
Classify common veterans’ entitlements, Services Australia payments and other statutory payments using their legal character.
Apply the hobby, gambling, gift, mutuality and foreign employment principles to common professional scenarios.
Identify the practical consequences of classification for deductions, tax losses, reporting and income tests.
Apply the 2026–27 superannuation lump sum thresholds and use a structured evidence-based review process.

Learning outcomes

Following the correct sequence for classifying a receipt under Australian income tax law.
Distinguishing taxable, exempt, NANE and non-income components of government and compensation payments.
Assessing whether a hobby, windfall, gift or mutual receipt remains outside assessable income.
Identifying when foreign employment income may be exempt and explaining the associated disclosure consequences.
Documenting a professional classification conclusion using the supplied tables, evidence prompts and decision tools.

CPD/CPE compliance mapping

The mapping indicates how the learning outcomes align with broad technical and professional development expectations. It does not determine whether a particular activity satisfies an individual member’s annual requirements.


Lesson	CPA Australia	CA ANZ	IPA	Tax Practitioners Board
Classifying exempt and non-taxable amounts	Australian taxation technical knowledge and classification judgement.	Tax technical competence and application of legislation.	Taxation knowledge and professional competence.	Tax law knowledge relevant to competent tax agent services.
NANE income and excluded receipts	Technical analysis of NANE, deductions, losses and reporting consequences.	Application of statutory categories and professional judgement.	Applied income tax knowledge and accurate reporting.	Correct treatment of non-assessable amounts and related obligations.
Hobbies, windfalls and gifts	Income characterisation, evidence and business boundary analysis.	Evidence-based analysis of personal and commercial receipts.	Professional competence in individual and business taxation.	Competent application of ordinary income and record-keeping principles.
Overseas, mutual and superannuation issues	Foreign income, mutuality and superannuation technical knowledge.	Application of specialised exemptions, caps and reporting rules.	Advanced taxation knowledge for diverse client circumstances.	Maintaining current tax law knowledge for accurate advice and services.