Members of clubs are not taxed on interactions between them.  So, contributions like membership fees are not considered income, as this “principle of mutuality” means that members' fees are treated as capital.

In relation to this, interest on the club bank account would be assessable income but not the membership fees contributed.  Here is the legal version:

“The principle of mutuality applies to the retained voluntary tips and non-voluntary tips where the trading activity or function is for members only (mutual receipts), or member and non-member customers (apportionable revenue). Mutuality would not apply if the trading activity or function is for non-members only."

Read more on the ATO website - Taxable Income and Mutuality

Disclaimer: This information is general in nature and is not an opinion expressed by us. So, before acting on this or any other information, it is important to seek professional advice related directly to you and your circumstances.  Should you require our assistance, contact your Primarius Team leader, or email us at info@primarius.net.au

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