Private ruling: Income from boarders
Date of advice: 27 June 2018
Published: September 2018
Ruling period: 1 July 20XX to 30 June 20XX 1 July 20XX to 30 June 20XX
Date scheme commenced: 17 May 20XX

Ruling: Q1: Are amounts received by you for having boarders (friends) in your home included in your assessable income? | A1: No. Having considered your circumstances and relevant factors, the money you receive from your boarders for their portion of the utilities are considered to be private in nature and therefore not assessable income as per Income Tax Assessment Act 1936 subsection 6(1).

Relevant facts and circumstances: You intend to buy a property and rent out rooms of the property to your friends. There will be no tenancy agreement and this will be a private arrangement. You will furnish all rooms and share common spaces with your friends. You will not allow the contents or layout of the rooms to change. You will retain access to all rooms to ensure they are maintained. Utility expenses will be shared equally between your friends and yourself. You will pay the expenses and your boarders will reimburse you for their share of the expenses .

Relevant legislative provisions: Income Tax Assessment Act 1936 subsection 6(1)