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Edited version of your written advice
Authorisation Number: 1051382228581
Date of advice: 8 June 2018
Ruling
Subject: Income – assessability of medical trial payments
Question:
Are the payments you receive for your participation in clinical trials included in your assessable income?
Answer:
No
This ruling applies for the following periods:
Year ending 30 June 20xx
Year ending 30 June 20xx
Tear ending 30 June 20xx
This scheme commenced on:
Relevant facts
You participated in a number of clinical trials over a number of income years.
You attend an initial screening process to determine your suitability for participating in a clinical trial.
You signed an agreement to participate in each trial.
The agreement detailed the clinic’s expectations of you and the amount you were to be paid for your participation in the clinical trial.
Depending on the clinical trial being undertaken you were required to take a medication.
You sometimes experienced side-effects from the medication as part of the clinical trials.
You were required to stay over-night anywhere from a period of X to XX days and then attend a number of follow-up consultations depending on the clinical trial being undertaken.
The payer has advised that the payments made are not paid to compensate you for any loss of earnings as a result of participating in the medical trail but is to compensate you for your time, any out of pocket expenses and for the inconvenience experienced for completing the trial.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 6-5
Reasons for decision
Having considered your circumstances and the relevant facts, the payments you received as to attend the various medical trials are not considered ordinary income and are not required to be included in your assessable income under section 6-5 of the Income Tax Assessment Act 1997.
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