Private ruling: Carer payments
Date of advice: 22 December 2015
Published: March 2016
Ruling period: Year ending 30 June 2015 | Year ending 30 June 2016 | Year ending 30 June 2017 | Year ending 30 June 2018
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are the carer payments you receive on a fortnightly basis considered assessable income? | A1: No.

Relevant facts and circumstances: You provide full-time care to a person who has been diagnosed with multiple disabilities. This person resides with your family on a voluntary basis; you do not foresee this changing in the future. The care you provide is extensive and covers all their personal and day to day needs. You incur costs as part of your provision of care. You receive a fortnightly payment to assist you with the day-to-day costs of providing care, such as food, household provisions, utilities, clothing, recreational activities etc and is intended to be a contribution towards these costs. The amounts you receive do not cover all the costs that you incur in relation to the care you provide. You are not an employee of the department and are not in the business of providing full-time or part time care.

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

Reasons for decision: Summary: Taxation Determination TD 2006/62 Income tax: are certain payments to a volunteer foster carer to provide foster care assessable income, discusses payments made to foster carers. Although you are not a foster carer as such, the principals discussed in the determination are relevant and can be applied to your circumstances. TD 2006/62 states that payments received by a foster carer are not assessable where: • the payments are made to meet the costs associated with the care of a child • the carer is not employed by a care agency • the payments are not received as part of a business of providing foster care. In your case, the payment is made to you in recognition of the care you give to a disabled person that you have taken into your home. It is paid to assist you with the costs associated with that care. Therefore, the payments do not form part of your assessable income and you are not required to include the amounts anywhere in your tax return.