Having read over Tax Ruling:92788, it could be equally argued that that income derived from domestic solar electricity generation is "taxable income" and, thus, the entity is able to claim deductions against earning that income.
The ATO ruling's argument in relation to "green power" is moot.
If stating that the income is not a regular income, then it could also be argued that interest from a bank account is also not regular income. As with most bank accounts they are an essential part of everyday life and are not primarily set up to generate income.
I can see why the ATO (and Treasury) would deem domestic solar electricity generation as not being assessable income. Because as anyone who had done there sums, would know that a solar electricity system will never pay itself off, nor would the reduction in carbon dioxide be realised for 10-15 years. This would amount to running up massive losses that entities could claim on their tax return... And we can not have that now, can we ? For the purpose of people who receive a pension or payment from Centrelink, and because they want to know gross income (you can not claim any deductions against earning that income), it would be in the government's interest to deem domestic solar electricity generation as assessable income. But for the purpose of the ATO it is not in the government's best interest to deem it to be assessable income. Basically, I think, they will have two sets of rules as the currently do for the citizens of this country. This ruling really needs to be tested in the High Court.
As I am one (along with millions other others) whom regularly has to deal with Centrelink in relation to "Parenting Payment", I basically have to do the equivalent of two tax returns a year because of the different accounting rules that either department use for assessing income.
Know your rights, question everything that Centrelink do. --Dan
