Compensation from your bank or financial institution – is it taxable? 

February 2024 Newsletter

With Christmas a distant memory life, and tax obligations, are returning to a familiar routine. In this issue we look at a variety of tax issues, including a consideration of the tax consequences if you receive compensation when your bank or financial institution hasn’t acted as ethically and correctly as they could have; the tax issues and obligations surrounding volunteers; whether that family heirloom you inherited from grandma came with a tax sting in the tail; the circumstances in which you may be able to use your super to pay your mortgage; and the super consequences of returning to work after retirement. 

We trust that this newsletter will provoke some thoughtful discussion around these issues as we launch into 2024.

This edition features pieces on:

  • Compensation – is it taxable? Have you received compensation for bad advice or unethical behaviour, particularly from the banking and financial advice sector? There may be tax consequences. We explain how to navigate these payments from a tax perspective.
  • Tax issues when dealing with volunteers: Volunteers can be an invaluable resource to many clubs, groups and charities. But what of payments made to these volunteers? We look at whether payments to volunteers constitute assessable income and whether their expenses are tax deductible.
  • Collectibles and inherited jewellery: Whether you’re a genuine collector or just a hoarder, those trinkets may come with a capital gains tax kicker. We look at the rules to be aware of when selling certain of these types of assets.
  • Using super to pay the mortgage: You may be able to use your super to pay down your mortgage, but there are tricks and traps. We look at this highly topical issue.
  • Returning to work after retirement: Retirement just not cutting it? We look at the superannuation consequences of returning to work after retirement.


For further information, please call the Colledges team on (03) 9851 6500 or email us at

Come and experience the Colledges Advantage for yourself.