| Disclaimer This edited version has been archived due to the length of time since original publication.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. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private ruling
Authorisation Number: 1011655874431
This edited version of your ruling will be published in the public Register of private binding rulings after 28 days from the issue date of the ruling. The attached private rulings fact sheet has more information.
Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. Contact us at the address given in the fact sheet if you have any concerns.
Ruling
Subject: Income - ordinary concepts
Are you assessable on your portion of rental payments made to the body corporate?
Yes.
This ruling applies for the following period
Year ended 30 June 2006
Year ended 30 June 2007
Year ended 30 June 2008
Year ended 30 June 2009
Year ended 30 June 2010
The scheme commenced on
1 July 2000
Relevant facts and circumstances
You are the owner of a unit which is part of a block of units.
These are all residential.
A telephone company was granted permission by the Body Corporate to erect mobile telephone apparatus on top of the building in return for a yearly rental.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 6-5(2).
Reasons for decision
Subsection 6-5(2) of the Income Tax Assessment Act 1997 provides that the assessable income of a resident taxpayer includes ordinary income derived directly or indirectly from all sources during the income year.
Taxation Ruling IT 2505 discusses bodies corporate constituted under strata title legislation.
In a State, where the common property is vested in the body corporate as agent for the proprietors, the income derived from the use of the common property constitutes assessable income of the individual proprietors.
This is considered to be so even where the moneys are paid directly into one of the body corporate's funds. In these cases, proprietors receive a benefit in that the amount needed to be levied on the proprietors by the body corporate as contributions to the administrative or other fund would be reduced by the rental income applied directly to the fund. Accordingly, these amounts are included in assessable income of the proprietors.
In your case, rental payments were made to the Owners Corporation for a mobile phone towers installed on the building in which your unit was situated.
In line with the principles discussed in IT 2505 your portion of the rental payments are assessable.