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Edited version of private advice
Authorisation Number: 1051818228873
Date of advice: 22 March 2021
Ruling
Subject: Whether you are carrying on a business of tutoring
Question
Am I in the business of tutoring?
Answer
No. From the information provided, you do not meet the definition of a 'business' outlined in section 995-1 of the Income Tax Assessment Act nor do you meet the relevant factors contained in Taxation Ruling TR 97/11 Income Tax: am I carrying on a business of primary production? Considering your circumstances, we do not consider the activities you are undertaking to represent that of a business. Further information about carrying on a business can be found by searching 'QC 31733' on ato.gov.au
This ruling applies for the following periods:
Year ending DD MM YYYY
The scheme commences on:
DD MM YYYY
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You are currently a full-time university student.
You tutor 1-2 high school students per year.
You offer 1-hour tutoring sessions per student, up to twice a week.
You charge $30-$40 per hour.
You do not charge GST.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subsection 6-5(1).
Income Tax Assessment Act 1997 Section 995-1.
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