Private ruling: Assessable income
Published: July 2012
Ruling period: Year ended 30 June 2011 | Year ended 30 June 2012
Date scheme commenced: 1 July 2010

Ruling: Q1: Are the rent payments made by the entity assessable income to you? | A1: No.

Relevant facts and circumstances: You worked as a volunteer and receive no remuneration for your work. However accommodation was provided for you by the entity you provided volunteer work for.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5

Reasons for decision: Summary: Australian Taxation Office publication: Volunteers and tax (Nat 4612-04-2008) provides the following regarding payment to volunteers. As a general rule volunteers do not have to pay tax on payments or benefits they receive in their capacity as volunteers. There is no legal definition of 'volunteer' for tax purposes. The dictionary defines a volunteer as someone who enters into any service of their own free will, or who offers to perform a service or undertaking. Volunteers can be paid in cash, given non-cash benefits or given a combination of both cash and non-cash benefits. These payments are given various descriptions, including honoraria, reimbursements and allowances. Sometimes they are given no name at all. How an amount is described does not determine its treatment for tax purposes. Whether a payment is assessable income in the hands of a volunteer depends on the nature of the payment and the recipient's circumstances. Generally, receipts which are earned, expected, relied upon and have an element of periodicity, recurrence or regularity are treated as assessable income. A payment to a volunteer that is not assessable will have many of the following characteristics. · the payment is to meet incurred or anticipated expenses. · the payment has no connection to the recipient's income-producing activities or services. · the payment is not received as remuneration or as a consequence of employment. · the payment is not relied upon or expected by the recipient for day-to-day living. · the payment is not legally required or expected. · there is no obligation on the part of the payer to make the payment. · the payment is a token amount compared to the services provided or expenses incurred by the recipient. Whether the payment is token depends on the full facts surrounding the payment and recipient's circumstances. In your circumstances you received no payment for your volunteer work. Through the arrangement between two separate entities your accommodation was provided at a token amount to put you in a position to be available to conduct your volunteer work but it was not provided as a result of your volunteer work. Therefore the payment for accommodation by the entity you provided volunteer work for is not required to be included in your assessable income.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.