Private ruling: Assessable income - home stay
Date of advice: 27 August 2024
Published: 8 October 2024
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 2023

Ruling: Q1: Is the income you received under a home stay arrangement considered assessable income under section 6 - 5 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: No. The facts of the ruling support the position that the students were living at your premises under a 'homestay' arrangement as described in ATO Interpretative Decision ATO ID 2001/381- Payments received under a homestay arrangement. Therefore, the amounts received by you with regard to the students under the homestay arrangement are not assessable as income under section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997).

Relevant facts and circumstances: During the 20XX tax year you hosted some international students at your home under a home stay arrangement. The students were referred to you through a school based in your local area. Your income from hosting students during the 20XX financial year was $XXXX for all the students. The student's pay a fixed rate, normally around $XXXX per week. You supply meals, bedroom linen and all bathroom essential toiletries. You are also required to provide a desk, study lamp, Wi-Fi and all the necessary items to support the students to study. You also sometimes show the students around points of interest in your local area. There are occasions where you have a small surplus of income, and there are times where your expenses and outgoings are slightly higher than your income. You consider the hosting as more of a hobby than a way to generate income.

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