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CG 4: Receipts for expenditure or loss from insurance, indemnity, or otherwise
or “Money received to cover expenses or losses you claimed as tax deductions”
You could also call this:

“Employers may need to pay tax on money recovered from employee superannuation schemes”

If you’re an employer, this law is about money you put into a superannuation scheme for your employees. A superannuation scheme is a way to save money for when you retire.

If you put money into a superannuation scheme for your employee, and you get to pay less tax because of it, there are some rules you need to know.

If you take that money back from the superannuation scheme, or if you get something valuable from the scheme that isn’t just the normal payments, you might have to count it as income. This means you might have to pay tax on it.

You only have to count as income the amount that you originally got to deduct from your taxes. If you get more than that, you don’t have to count the extra as income.

The law says you need to count this as income in the same year that you get the money or valuable thing back from the superannuation scheme.

Remember, if you get a payment from the scheme because you put your own personal money in, that doesn’t count as income under this rule.

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Next up: CG 5B: Receipts from insurance, indemnity, or compensation for interruption or impairment of business activities

or “Insurance or compensation for lost business income”
Next

Part C Income
Recoveries

CG 5Recoveries or receipts by employers from superannuation schemes

  1. This section applies when—

  2. an employer makes an employer’s superannuation contribution to a superannuation scheme for their employee’s benefit; and
    1. the employer is allowed a deduction for the contribution; and
      1. the employer—
        1. recovers the contribution from the superannuation scheme; or
          1. receives a benefit in money or money’s worth from the superannuation scheme, other than an amount paid to the employer under the scheme in return for contributions made by or for the employer in a personal capacity.

          2. The amount recovered or received is, to the extent of the deduction, income of the employer.

          3. The income is allocated to the income year in which the amount is recovered or received.

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