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Edited version of private advice
Authorisation Number: 1051624891939
Date of advice: 15 January 2020
Ruling
Subject: Assessable income
Question
Are the amounts that are paid periodically to the entity as a Special Disability Approved (SDA) provider under the National Disability Insurance Scheme (NDIS) assessable income?
Answer
Yes. Having considered the circumstances and the relevant factors, the payments that are received periodically by the entity for providing SDA accommodation to a NDIS participant are considered ordinary income under section 6-5 of the Income Tax Assessment Act 1997. As the payments are assessable income the entity will be entitled to claim deductions in relation to the rental dwelling.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
Under the terms of the NDIS the entity was established.
The entity is a Special Disability Approved (SDA) provider under the National Disability Insurance Scheme.
Under the NDIS the entity is paid periodically to provide SDA accommodation to an approved NDIS participant.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 6-5