Income Tax Act 2007 section 564L

Other arrangements

Section 564L defines what constitutes "alternative finance return" for deposit arrangements, profit share agency arrangements, and investment bond arrangements.

• For deposit arrangements, amounts paid or credited by a financial institution from profits generated through the use of deposited money count as alternative finance return.
• For profit share agency arrangements, amounts paid or credited by a financial institution in line with the principal's entitlement to profits under the arrangement count as alternative finance return.
• For investment bond arrangements, additional payments under the bonds are treated as alternative finance return, unless any part of those payments is equivalent in substance to discount.
• Any portion of additional payments on investment bonds that equates to discount is excluded from alternative finance return for income tax purposes and is instead dealt with under the separate discount rules in section 564R.