I see there is a long ATO Ruling on taxation of Strata Schemes. From my amateur reading it seems to suggest that interest income is OK to treat this way, but if the scheme makes income from common property (eg renting the roof space for a mobile phone tower) then that needs to be distributed to owners.
Income is income (interest counts but levies don’t). Have a look here.
By the way, your link to a Google search didn’t work and was removed. You have to post the web address of the page you found, not the address of the Google search that found it.
Sorry about the link – but its the same ruling as in your post. And there are some interesting quirks in it. eg Paragraph 31 – fees for strata role inspections are not income when done by an owner, but are if by a non-owner. And 37 on Strata scheme owned items. Seems to say that if the scheme has say a shared laundry, with scheme owned coin operated machines, then when owners use them, the money paid is not income, but when others (eg renters) do then it is. Would be an interesting exercise allocating that income out.
Further I am not sure I agree with your “Income is Income” In para 36 the ruling says “…Any interest, dividends or interest income derived by the strata title body from the investment of moneys held in its fund represents assessable income of the strata title body …”. Then in paragraphs 39-45 in talks about income from common property, and gives the phone tower example.
So to me the the upshot is “its complex” – and that is I suppose why tax accountants and lawyers exist and are paid for their services and advice.