Australian Sports Commission
Our commitment to you
This publication provides you with the following level of protection:
If you follow our information in this publication and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we must still apply the law correctly. If that means you owe us money, we must ask you to pay it but we will not charge you a penalty. Also, if you acted reasonably and in good faith we will not charge you interest. If you make an honest mistake in trying to follow our information in this publication and you owe us money as a result, we will not charge you a penalty. However, we will ask you to pay the money, and we may also charge you interest. If correcting the mistake means we owe you money, we will pay it to you. We will also pay you any interest you are entitled to. If you feel that this publication does not fully cover your circumstances, or you are unsure how it applies to you, you can seek further assistance from us. This publication was current as at July 2019. |
Treatment of grants received under dAIS
This fact sheet provides guidance on the taxation implications of the grants you receive from the Australian Sports Commission (ASC) as an athlete.
This fact sheet does not apply to you if you are carrying on a business as a sportsperson. This fact sheet also does not apply to you if you are carrying on an enterprise as a sportsperson for goods and services tax (GST) purposes.
Are dAIS grants taxable?
The following are considered to be assessable income:
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- payments received from, in respect or, or in connection with employment
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- payments or other benefits received for, in respect of, or in connection with, services provided.
Are you engaged as an employee of the ASC?
No. Athletes are not employees of the ASC.
While there are certain conditions that are required of you on acceptance of the grant, for example performing at a high standard and abiding by the spirit and rules of your sport, these conditions do not indicate that you are an employee of the ASC. Additionally, there is no employment contract between athletes and the ASC.
Are you providing services to the ASC?
No. There is no agreement that requires you to provide or supply services to the ASC. You are required to meet certain conditions in order to qualify for the grant, however these conditions do not amount to the rendering of services to the ASC.
Do the capital gains tax provisions apply to the grant?
Yes. Your entitlement to receive a dAIS grant is a CGT asset that is acquired when the grant is accepted. However any capital gain or capital loss resulting from the receipt of a payment is disregarded.
Can I claim a deduction for my expenses incurred whilst volunteering?
No. As the grant received is not assessable income you cannot claim a deduction for any of your sporting activity expenses in relation to your involvement with your volunteer work.
Does the ASC need to withhold tax?
No. There is no requirement for the ASC to provide you with a payment summary or report to the ATO the amounts ASC pays to you.
Are you liable for GST?
No. GST may be payable for supplies of goods or services by individuals who carry on an enterprise and are registered for GST. If you do not receive the grant in connection with any enterprise you carry on in respect of your sporting activities, then you will not be required to pay GST to the ATO.
More information
For more information on these types of payments, see:
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- Class Ruling CR 2015/19 Income tax: grants provided by the Australian Sports Commission under dAIS
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- Taxation Ruling TR 1999/17 Income tax: sportspeople -- receipts and other benefits obtained from involvement in sport
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- Goods and Services Tax Ruling GSTR 2012/2 Goods and services tax: financial assistance payments
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- If you wish to discuss your circumstances, call us on 13 28 61.
© AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA
You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
Siebel/TDMS Reference Number: 1-HWHVTF7 Date of publication: 12 July 2019