Is a sign up incentive to open new bank account treated as assessable income?

 Author: JayATO(Community Support)Community Support

1 June 2026

Hi @Confusedak,

The $50 cashback you receive as a sign-up incentive for opening a new bank account is generally not assessable income. This type of payment is considered a gift or incentive from the bank, rather than income from your employment or business activities.

In Australia, gifts are generally not treated as assessable income when the transfer is made voluntarily, you don't provide anything in return, and the giver doesn't materially benefit from the arrangement. The bank's cashback offer fits these criteria as it's a promotional incentive to attract new customers.

However, any interest you earn on the money deposited in this account will be assessable income. You'll need to declare the interest in your tax return, even though the initial cashback amount itself isn't taxable.

You can find more information about what income to include in your tax return on our website.

Reply0 likes

• Report as inappropriate