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suz2(Champion)Champion
12 Aug 2024

I have avoided Bonds as they did not seem to be tax effective. However, I recently invested in an Australian Unity Bond which is listed on ASX. It pays interest quarterly. Australian Unit is a health insurance company.

I have noticed that the amount that is auto filled on my tax return does not equate to the full amount of interest paid in a year. ( seems to miss a payment)

Google says there is no tax at all on the interest.

Ato web-site does not help.

Should I be paying tax at all? I am below the 30% tax level.

Are the interest payments those actually deposited in my bank account for that year?







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3 replies
333 views
3 replies

Most helpful response

Most helpful replyATO Certified Response

AshleyATO(Tax Time Tech Expert)Tax Time Tech Expert
ATO Certified Response4 Sept 2024

Hi @suz2


Interest on normal Bonds is assessable income when received. The interest is received when it is deposited into your bank account. There is nothing on the payer’s website or the terms and conditions of the bonds they have issued to indicate the interest paid is not assessable.


You could check with the payer if the prefilled amount is different from the amount received. This may just be a matter of their records not being updated when the ownership of the bonds changed.


Whether you will pay tax in a particular year will depend on your other income, deductions and offsets you can claim.

All replies

Most helpful replyATO Certified Response

AshleyATO(Tax Time Tech Expert)Tax Time Tech Expert
ATO Certified Response4 Sept 2024

Hi @suz2


Interest on normal Bonds is assessable income when received. The interest is received when it is deposited into your bank account. There is nothing on the payer’s website or the terms and conditions of the bonds they have issued to indicate the interest paid is not assessable.


You could check with the payer if the prefilled amount is different from the amount received. This may just be a matter of their records not being updated when the ownership of the bonds changed.


Whether you will pay tax in a particular year will depend on your other income, deductions and offsets you can claim.

suz2(Champion)Champion
9 Dec 2024

I actually altered the prefilled amount on my tax return to my figure (higher), I had to give a reason. I am wondering what the figure prefilled next year will be, whether the shortfall will be added to the correct amount.

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