Private ruling: Income: payment for services
Published: October 2011
Ruling period: Year ended 30 June 2011
Date scheme commenced: 1 July 2010

Ruling: Q1: Are the amounts received from providing your services assessable income? | A1: 


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

Reasons for decision: Summary: Section 6-5 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. Generally, where a person receives remuneration as a result of providing their services or labour, the amounts are included in the taxpayer's assessable income. In your case, from the information you have provided your activity is not considered a hobby as you provide your services to a business for which you receive remuneration for your services. Accordingly, the amounts received form part of your assessable income under section 6-5 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. | You agreed to provide services to a business. | The business organises the clients who you provide services to. | You pay the business a fee for organising your clients. | You travel to the client's home to provide your services. | You are paid an hourly rate for your services. | You do not have an Australian Business Number. | You do not advertise your services. | Your work is irregular as you may only work a few hours a fortnight. | You are required to take out insurance with the business's insurer. | You do not keep business records.