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Edited version of your private ruling
Authorisation Number: 1012582130714
Ruling
Subject: Income
Question
Are the payments you receive for board and lodging from your partner assessable income?
No.
This ruling applies for the following period
Year ended 30 June 2014
The scheme commences on:
1 July 2013
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 own a one bedroom apartment.
You live with your partner who generally pays you an amount per week. This contributes towards running costs of the property.
You and your partner spilt other utility bills equally.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 6-5
Income Tax Assessment Act 1997 Section 6-10
Income Tax Assessment Act 1997 Section 6-15
Income Tax Assessment Act 1997 Section 6-20
Income Tax Assessment Act 1997 Section 8-1
Reasons for decision
Subsection 6-5(1) of the Income Tax Assessment Act 1997 (ITAA 1997) states that your assessable income includes income according to ordinary concepts. This 'ordinary income' includes amongst other things, income from salary and wages and business operations.
Taxation Ruling IT 2167 considers the assessability of payments for board and lodging paid by family members and states:
Arrangements of this nature, whether the payment is said to be for board only or for lodging only or for both, are considered to be in the nature of domestic arrangements not giving rise to the derivation of assessable income by the recipient of the payments. It follows that the question of income tax deductions for losses or outgoings does not arise.
In your case, we consider that the payments you receive from your partner are in relation to a domestic or social arrangement rather than a commercial transaction. Consequently, these amounts are not included in your assessable income.
Any losses or outgoings that you incur are not allowable as tax deductions under section 8-1 of the ITAA 1997 because you have not produced any assessable income.