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Edited version of your private ruling
Authorisation Number: 1012384641578
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Ruling
Subject: Assessment of your carer payments
Question
Are the carer payments received by you considered to be assessable income?
Answer
Yes
This ruling applies for the following periods:
Year ended 30 June 2012
The scheme commences on:
1 July 2011
Relevant facts and circumstances
You provide attendance care and household services to a person for a certain number of hours a fortnight. You are paid for doing this by Comcare at a set hourly rate.
You do not do this work for anyone else. You do not have an ABN and are not registered for GST.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 6-5(2)
Reasons for decision
Subsection 6-5(2) of the Income Tax Assessment Act 1997 (ITAA 1997) provides that the assessable income of a resident taxpayer includes ordinary income derived directly or indirectly from all sources during the income year. Payment for personal services is ordinary income for the purposes of subsection 6-5(2) of the ITAA 1997.
In your case, you are providing care to a person and are paid by Comcare for providing the service. You invoice Comcare for the work that you do and you are paid at a set rate.
The carer payments received by you to care for the person are assessable as income under subsection 6-5(2) of the ITAA 1997.
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