Private ruling: Assessment of your carer payments
Published: December 2012
Ruling period: Year ended 30 June 2012
Date scheme commenced: 1 July 2011

Ruling: Q1: Are the carer payments received by you considered to be assessable income? | A1: Yes

Relevant facts and circumstances: You provide attendance care and household services to a person for a certain number of hours a fortnight. You are paid for doing this by Comcare at a set hourly rate. You do not do this work for anyone else. You do not have an ABN and are not registered for GST.

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. Payment for personal services is ordinary income for the purposes of subsection 6-5(2) of the ITAA 1997. In your case, you are providing care to a person and are paid by Comcare for providing the service. You invoice Comcare for the work that you do and you are paid at a set rate. The carer payments received by you to care for the person are assessable as income under subsection 6-5(2) of the ITAA 1997.

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.