Private ruling: Asylum Seeker Assistance Scheme payments
Published: December 2011
Ruling period: Year ended 30 June 2011
Date scheme commenced: 1 July 2011

Ruling: Q1: Are the amounts you have received through the Asylum Seeker Assistance Scheme assessable (ASAS) income? Answer Yes.

Relevant facts and circumstances: You made an application to the Department of Immigration and Citizenship (the Department) for assistance under the ASAS. On the basis of the evidence you provided, the Department determined that you were eligible for income support and provided you with a letter of approval. To activate the payments you were required to visit the Australian Red Cross (Red Cross) and provide your bank account details. To remain eligible for income support payments, you were required to visit the Red Cross on a fortnightly basis for re-assessment. You received the ASAS payments during the 2010-11 financial year.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subsection 6-5(2)

Reasons for decision: Summary: Subsection 6-5(2) of the Income Tax Assessment Act 1997 (ITAA 1997) provides that the assessable income of a resident taxpayer includes ordinary income derived directly or indirectly from all sources during the income year. Ordinary income has generally been held to include three categories, namely income from rendering personal services, income from property and income from carrying on a business. Whether or not a particular amount is ordinary income depends on the nature and character of the receipt in the hands of the taxpayer. The motive of the payer is immaterial. Characteristics of what is ordinary income have evolved from case law and include: · receipts that are earned, · are expected, · are relied upon, and · have an element of periodicity, recurrence or regularity. The fortnightly ASAS payment you received from the Red Cross are considered to be ordinary income, being periodical receipts that are expected and relied upon by you.

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