Edited version of your private ruling

Authorisation Number: 1051500192771

Date of advice: 25 March 2019

Subject: Honorariums

Question

Are the payments amounting to $XXX received non-assessable income?

Answer

Yes. Having considered your circumstances and the relevant factors, the Commissioner accepts that the payments are honorary. The payments have some characteristics of assessable income, i.e. they are expected and relied upon. However, they have no connection with your income producing activities, they are not legally required and they are a token amount compared to the services you have provided. On balance, the payments are considered to be honorary payments and are therefore non-assessable for taxation purposes.

Further information on Honorariums is available by searching 'QC 46354' on ato.gov.au

This ruling applies for the following period

Year ended 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

You volunteer as a lecturer for an online University.

Your employment is in another field of work.

The university offers tuition-free degrees to the underprivileged.

You only provide volunteer services on a needs basis each term

You volunteer for approximately XX hours per week over a number of weeks to complete each course.

You receive a payment for each course.

The payments, when calculated against your hours of work, amounts to a small percentage of the minimum hourly wage.

During the financial year, you received five $XXX.XX (USD) payments.

You do not represent your employer at the university.

The payment has no connection to your income-producing activities or services

Relevant legislative provisions

Income Tax Assessment Act 1997 Subsection 6-5(2)