Private ruling: Collection of a government fee
Published: December 2013
Ruling period: Year ended 30 June 2014 | Year ended 30 June 2015 | Year ended 20 June 2016
Date scheme commenced: 1 July 2013

Ruling: Q1: Is the government fee assessable to your company? | A1: No.

Relevant facts and circumstances: You have a website which offers an online lodgement product with a government department. Your system guides the client through the steps in completing the application. Once the application is completed, the client is required to pay the government lodgement fee and your service fee. Once payment is received the application is electronically lodged with the government department. The government department debits your business account on approval of the application. You are a registered agent of the government department.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 6-5 | Income Tax Assessment Act 1997 Section 6-10

Reasons for decision: Summary: Section 6-5 and section 6-10 of the Income Tax Assessment Act 1997 provide that the assessable income of an Australian resident taxpayer includes ordinary and statutory income derived directly and indirectly from all sources during the income year. The Commissioner considers that you are merely acting as an agent on behalf of the government department and the fee you collect is not your income. Therefore the amount is not assessable as either ordinary or statutory income and you are not required to include the amount in the company's income tax return.

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