Private ruling: Honorariums
Date of advice: 25 March 2019
Published: May 2019
Ruling period: Year ended 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Are the payments amounting to $XXX received non-assessable income? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner accepts that the payments are honorary. The payments have some characteristics of assessable income, i.e. they are expected and relied upon. However, they have no connection with your income producing activities, they are not legally required and they are a token amount compared to the services you have provided. On balance, the payments are considered to be honorary payments and are therefore non-assessable for taxation purposes. Further information on Honorariums is available by searching 'QC 46354' on ato.gov.au

Relevant facts and circumstances: You are employed as a researcher and assistant. You also work as a teacher/lecturer. You were elected to a society as a membership secretary during the relevant income yea r. This task involves basic secretarial work, communicating with members and issuing receipts for payments. You work approximately once per week in irregular patterns. During the financial year, you received two payments. One payment was expected and was for secretarial work. One payment was for administrative assistant work for the treasurer. You pay an amount be a member of the society. You do not represent your employer.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subsection 6-5(2)