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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

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Edited version of your private ruling

Authorisation Number: 1012607887574

Ruling

Subject: Volunteer career payments

Question

Are the fortnightly reimbursement payments you receive for being a volunteer carer assessable income?

Answer

No.

This ruling applies for the following periods

Year ending 30 June 2014

Year ending 30 June 2015

Year ending 30 June 2016

The scheme commences on

1 July 2013

Relevant facts and circumstances

You provide full-time care in your own home for a person who has a disability through a private not-for-profit organisation

You are not an employee of the organisation and you are not in the business of providing full-time or part-time care.

Once you have finished caring for the current person you do not anticipate caring for any other persons.

You receive a fortnightly reimbursement payment to cover the costs of the person in your care. These include items such as:-

You incur costs and you expect that your costs will exceed the payment you will receive.

Relevant legislative provisions

Income Tax Assessment Act 1997 Section 6-5

Income Tax Assessment Act 1997 Section 6-10

Reasons for decision

Section 6-5 and section 6-10 of the Income Tax Assessment Act 1997 (ITAA 1997) provides that the assessable income of a resident taxpayer includes ordinary and statutory income derived directly and indirectly from all sources during the income year.

In your situation you are providing care for a disabled person and you receive an amount which is intended to reimburse you for the various costs you incur to look after the person. You have advised that you believe that the amounts you will receive will not cover the costs that you will incur in relation to the person you are caring for.

Taxation Determination TD 2004/75 Income tax: are payments to a volunteer respite carer to cover expenses of providing respite care for a disabled person assessable income, provides guidance about where a carer receives a reimbursement for the costs of caring for a disabled person. Where the payment is intended to cover expenses incurred in providing the care including food and drink, laundry, recreation activities and transport the payment is considered to be in the nature of a reimbursement of expenses and therefore is not assessable income.

Based on the facts provided we accept that you are receiving monies with the intention that these monies will be used to cover the costs you incur in providing care to the disabled person. Such payments are not considered to be ordinary income or statutory income.

Therefore, the payments do not form part of your assessable income and you are not required to include the amounts in your tax return.

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