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Edited version of your private ruling
Authorisation Number: 1012251224961
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Ruling
Subject: Income from coaching activities
Question:
Are you assessable on the payments you receive for coaching?
Answer:
No
This ruling applies for the following period
Year ended 30 June 2012
The scheme commenced on
1 July 2011
Relevant facts and circumstances
You were approached by a local school to coach a sports team.
You were previously an elite sportsperson in this field.
You have no formal coaching qualifications, accreditations or certificates.
You are required to sign a 'statement by a supplier' declaring that the supply is made in the course of an activity done as a private recreational pursuit.
You are remunerated for your time on an hourly rate and paid by cheque on a fortnightly basis. Hours can vary, you have no set minimum or maximum hours you are required to work.
You work a number of hours per week. You are required to submit a time card each fortnight showing the hours you work.
No contract of employment is in place. You do not receive paid leave, sick leave. You are not eligible for long service leave.
You do not invoice the school for hours worked and do not quote an ABN.
The school is a not for profit organisation.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 6-5
Income Tax Assessment Act 1997 Section 6-10
Reasons for decision
Taxation Ruling TR 1999/17 discusses benefits received by individuals from involvement in sport.
The Ruling sets out the Commissioner's view as to whether these benefits are assessable income.
The Ruling applies to individuals who receive benefits through their involvement in sport, either as a participant or as an official, such as a referee or coach.
Paragraph 9 of TR 1999/17 states that the following types of payments are considered to be assessable income when paid to sportspeople:
· Payments received from, in respect of, or in connection with employment;
· Payments or other benefits received for, in respect of, or connection with services provided; and
· Amounts of a revenue nature or other benefits received, including prizes and awards, from carrying on a business of participating in sport. This includes the exploitation of personal skills in a commercial way for the purpose of gaining reward.
· Money and other benefits received from the pursuit of a pastime or hobby are not assessable income. Consequently, any related expenses are not allowable deductions from those receipts.
In you case, we do not consider the payments you receive are derived in respect of employment or that you are an employee of the payer.
The payments you receive for coaching are not income in return for services that you provide but rather minor payments in appreciation for you undertaking this pastime.
You only coach for one school; your services are not offered to others. You do not rely on this type of work as your main source of income and you do not carry on the activity of coaching as a commercial activity. Your activities are carried out on a small scale and not in a business like manner. As such we do not consider you to be carrying on a business of coaching.
As such your payments are not assessable income under section 6-5 or section 6-10 of the Income Tax Assessment Act 1997.
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