| Disclaimer This edited version has been archived due to the length of time since original publication.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 your private ruling
Authorisation Number: 1011981293735
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. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.
Ruling
Subject: Income: payment for services
Question:
Are the amounts received from providing your services assessable income?
Answer: Yes
This ruling applies for the following period:
Year ended 30 June 2011
The scheme commenced on:
1 July 2010
Relevant facts:
You receive a pension.
You agreed to provide services to a business.
The business organises the clients who you provide services to.
You pay the business a fee for organising your clients.
You travel to the client's home to provide your services.
You are paid an hourly rate for your services.
You do not have an Australian Business Number.
You do not advertise your services.
Your work is irregular as you may only work a few hours a fortnight.
You are required to take out insurance with the business's insurer.
You do not keep business records.
Relevant legislative provisions:
Income Tax Assessment Act 1997 Section 6-5
Reasons for decision
Section 6-5 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.
Generally, where a person receives remuneration as a result of providing their services or labour, the amounts are included in the taxpayer's assessable income.
In your case, from the information you have provided your activity is not considered a hobby as you provide your services to a business for which you receive remuneration for your services. Accordingly, the amounts received form part of your assessable income under section 6-5 of the ITAA 1997.