Private ruling: Assessable Income
Date of advice: 20 October 2017
Published: March 2018
Ruling period: Year ended 30 June 2017.
Date scheme commenced: 1 July 2016

Ruling: Q1: Is your umpiring activity considered to be a hobby? | A1: Yes

Relevant facts and circumstances: You work permanent part-time in an industry not related to any sport. You signed a ‘Statement by Supplier’ advising that your service is ‘made in the course or furtherance of an activity done as a private recreational pursuit or hobby’. You hold an umpire’s badge. You play sport once each night and umpire games before/or after your played games. You can umpire up to seven games per week. The amount of remuneration you receive per game is nominal: You have not received a PAYG payment summary from either association. You umpire for approximately 45 weeks a year Both associations deposit payments directly into your savings account the following day.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 6-5 | Income Tax Assessment Act 1997 Subsection 6-5(1) | Income Tax Assessment Act 1997 Section 6-10 | Income Tax Assessment Act 1997 Section 10-5 | Income Tax Assessment Act 1997 Section 15-2 | Income Tax Assessment Act 1997 Subsection 15-2(1)

Reasons for decision: Summary: The payments you receive from umpiring are not assessable income as your activities constitute a pastime or hobby. You do not need to include the umpiring income in your income tax return. | Detailed Reasoning - Further issues for you to consider: As the payments received are not assessable income, all losses and outgoings that are incurred in connection with these activities are not allowable as a deduction. You will need to continue to complete a ‘Statement by supplier’ as this means that your payer will not be required to withhold tax from the payments that they make to you for umpiring.

The advice in the Register has been edited and may not contain all the factual details relevant to each decision. Do not use the Register to predict ATO policy or decisions.