ATO Interpretative Decision
ATO ID 2001/798
Income Tax
Income - Comcare payments received by care providersFOI status: may be released
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This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Are payments received by the taxpayer from Comcare for providing 'attendant care' services included in the assessable income of the taxpayer?
Decision
Yes. Payments received by the taxpayer from Comcare for providing 'attendant care' services are included in the assessable income of the taxpayer under section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997).
Facts
The taxpayer provides 'attendant care' for a disabled person as defined under section 4 of the Safety, Rehabilitation and Compensation Act 1988 (SRCA). The disabled person is an 'employee' of Comcare under the SRCA. 'Attendant care' includes providing regular and essential personal care for the disabled person.
The taxpayer receives the payments for the provision of the 'attendant care' direct from Comcare on a regular basis in accordance with section 29 of the SRCA.
Reasons for Decision
Payments received by the taxpayer from Comcare for 'attendant care services' are assessable income under section 6-5 of the ITAA 1997 as they constitute ordinary income. They are paid to the care provider pursuant to section 29 of the SRCA in discharge of the liability of the 'employee' to pay for those services. The payments are made on a regular basis and are received as a reward for the services the taxpayer provides.
Date of decision: 29 November 2001Year of income: Year ended 30 June 2001
Legislative References:
Income Tax Assessment Act 1997
section 6-5
section 4
section 29
Keywords
Exempt income
Compensation income
Assessable income test
ISSN: 1445-2782
| Date: | Version: | |
| You are here | 29 November 2001 | Original statement |
| 11 August 2017 | Archived |