Taxation Ruling

TR 97/1W

Income tax: Commonwealth benefits received by nursing homes

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Notice of Withdrawal

Taxation Ruling TR 97/1 is withdrawn with effect from today.

1. The Ruling addressed the assessability of 'general care' benefits and 'capital funding' benefits paid to nursing home proprietors under Part VA of the National Health Act 1953 (NHA) and clarified in what year of income those benefits were assessable under former subsection 25(1) and/or paragraph 26(g) of the Income Tax Assessment Act 1936. The ruling refers to inoperative provisions which have been repealed with effect from 14 September 2006.

2. The structure of Commonwealth funding for residential aged care services has changed significantly since the Ruling issued on 22 January 1997. The categories of 'general care' benefits and 'capital funding' benefits no longer exist and funding is now provided under the Aged Care Act 1997. The principles governing the timing of derivation of income from government grants are covered adequately in TR 2006/3.

3. The Ruling is withdrawn without replacement.

Commissioner of Taxation
30 May 2012


ATO references:
NO 1 22W5N44

ISSN 1039 - 0731

Subject References:
- assessable income
- nursing homes
- subsidies

Legislative References:
- ITAA 25(1)
- ITAA 26(g)
- ITAA 160ZH(11)
- NHA Part VA
- NHA 52
- NHA 58CG

Case References:
Arthur Murray (NSW) Pty Ltd v. FC of T
(1965) 114 CLR 314
14 ATD 98
9 AITR 673

Farnsworth v. FC of T
(1949) 78 CLR 504
9 ATD 33

FC of T v. Australian Gas Light Co & Anor
83 ATC 4800
(1983) 15 ATR 105

First Provincial Building Society Ltd v. FC of T
95 ATC 4145
(1995) 30 ATR 207

Henderson v. FC of T
(1970) 119 CLR 612
70 ATC 4016
(1970) 1 ATR 596

TR 97/1W history
  Date: Version: Change:
  22 January 1997 Original ruling  
  29 November 2006 Original ruling + note Repeal provision note
You are here 30 May 2012 Withdrawn