Private ruling: Assessable Income
Date of advice: 18 May 2019
Published: July 2019
Ruling period: Year ended 30 June 2016 | Year ended 30 June 2017 | Year ended 30 June 2018 | Year ending 30 June 2019
Date scheme commenced: 1 July 2015

Ruling: Q1: Is the income I receive for playing sport non-assessable income? | A1: Yes. Having considered your circumstances as a whole and the relevant tests, as per Taxation Ruling 1999/17, the Commissioner views the money received is from pursuit of a pastime or hobby, and therefore is not assessable. Further information on hobby for tax purposes can be found by searching ' QC 31733' on ato.gov.au

Relevant facts and circumstances: You play sport and have been paid by your club since 20XX season. You receive a payment for playing, based on an amount for every match played. This is received in an annual lump sum payment. You are not paid if you don’t play due to illness or injury. You are responsible for providing your own boots, tape & supplies, travel to & from training and matches, physio and medical costs. You acted as captain of the team. As a captain you are required to occasionally appear in media interviews to represent the club. As a team member you play every weekend of the season and train two-three times a week. You play for the love of the game and have played since you were a child. You do not receive any sponsorships or financial support for playing sport other than the match fees paid annually. You have part-time employment whilst finishing your university education. PAYG Payment Summaries have not been issued by the club nor has tax been withheld. You have declined to play for other clubs offering higher payments, as you play for enjoyment and want to continue with the your current team.

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