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Edited version of your private ruling
Authorisation Number: 7920151032832
Date of advice: 6 June 2022
Ruling
Subject: Assessable income
Question
Is the grant paid into your account by the Australian Council for the Arts (ACA) assessable to you under Income Tax Assessment Act 1997 (ITAA 1997) Section 15-10?
Answer
No. The grant you received is not assessable to you, however, you may be subject to tax based on the amount you receive as personal income.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
XX September 2021
Relevant facts and circumstances
You are a sole trader working as a freelance designer/artist.
Your not-for-profit group received a grant from the Australian Council for the Arts (ACA) under their "Arts Projects for Individuals and Groups" category.
This grant was transferred into your personal business bank account.
You do not have an entitlement to the grant personally.
The full amount was then transferred into a different bank account made specifically for the group.
You are not a signatory on the bank account, but 3 members of the group are.
Each group member will receive a portion of the grant in their personal accounts which is paid out of the group account.
The remaining amount will be used to pay for goods and services to complete the project.
Relevant legislative provisions
Income Tax Assessment Act 1997 (ITAA 1997) Section 15-10
Taxation Ruling 2006/3 (TR 2006/3) Income tax: government payments to industry to assist entities (including individuals) to continue, commence or cease business