Private ruling: Voluntary payments
Date of advice: 26 June 2018
Published: September 2018
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are the payments received for your involvement in organised competitions assessable income? | A1: No The characteristics of a payment made to a genuine volunteer that is not assessable are listed below: ● The payment is to meet incurred or anticipated expenses. ● The payment has no connection to the volunteer’s income-producing activities or services. ● The payment is not received as remuneration or as a consequence of employment. ● The payment is not relied upon or expected by the volunteer for day-to-day living. ● The payment is not legally required or expected. ● There is no obligation on the part of your organisation to make the payment. ● The payment is a token amount compared to the services provided or expenses incurred by the volunteer. Whether the payment is token depends on the full facts surrounding the payment and volunteer's circumstances. Based on the facts provided we consider the payments you will receive to be genuine volunteer payments (and also an honorary reward for voluntary services). Therefore, these payments are not regarded as assessable income under section 6-5 of the ITAA 1997.

Relevant facts and circumstances: You are currently employed, and you have engaged in a sport at an elite level for a number of years. You have asked to assist as a judge in various organised competitions for this sport. You expect to judge in a small number of these competitions throughout the year, and you expect to be required to judge for fairly short periods only at each competition. You expect to receive a small amount of money per competition, which is partly for your services as a judge in each competition, and partly to cover some expenses such as travel, clothing and meals. You will not be under a contract of employment at any of these competitions, and the payments are entirely at the discretion of each event organiser, and they are not obliged to make any payment. You will not be relying on these payments for any financial support. Your motivation in supporting the competitions is personal and for the gratification of seeing the sport progress. You have chosen to engage as a judge in the competitions for personal satisfaction and the advancement of the sport, rather than for financial gain. No formal agreements are in place for your services as a judge in the competitions.

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