Edited version of private advice

Authorisation Number: 1051847531521

Date of advice: 9 June 2021

Ruling

Subject: State XXX safety and security rebate

Question

Is the State XXX Safety and Security rebate assessable income in the hands of the recipients?

Answer

No, the State XXX Safety and Security rebate is not assessable income in the hands of the recipients.

This ruling applies for the following period periods:

1 July 20XX to 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

You have explained that the purpose of the proposed State XXX Safety and Security Rebate (SASR) is to assist senior citizens to purchase security equipment to better protect them and help them feel safer in their homes and is expected to impact approximately XXXX senior citizens in State XXX.

Under the SASR scheme, senior citizens will be able to purchase and have installed safety and/or security items (including deadlocks and smoke alarms etc) up to the collective value of $400. Upon presentation of proof of purchase, the clients would be entitled to claim the rebate provided:

•         The tax receipt evidences the relevant ABN and Trade Licence number; and

•         The purchased items comply with Australian safety standards.

Where the application process is satisfied, the Department of Communities will pay the rebate directly into the client's bank account.

The SASR scheme is a one-off payment for senior citizens however, is expected to run for a minimum of four years with the potential for further extension.

Relevant legislative provisions

Section 6-5 Income Tax Assessment Act 1997 (ITAA 1997).