Private ruling: Assessable Income
Published: September 2017
Ruling period: Year ended 30 June 2017.
Date scheme commenced: 1 July 2016

Ruling: Is the payment you receive as reimbursement for your activities of calling bingo games as a volunteer for a not for profit organisation considered assessable income? | Answer | No.

Relevant facts and circumstances: You work full time for an unrelated entity providing unrelated services. You volunteer your services as a bingo game caller for a registered not for profit organisation. You will usually call games over 4 nights at 2 venues per fortnight, each session being 5-6 hours long. You have been offered reimbursement for the costs you incur in driving to the venue, setting up the equipment, calling the games, drawing raffles, giving out vouchers, addressing issues and complaints with the attendees, and packing up and storing the equipment. This does not cover all the costs you incur in undertaking the activity and is not commensurate with average award wages for similar roles. There are no contracts between you and the organisation, they do not consider you an employee, withhold any tax or insure you as an employee and there is no obligation for them to pay you or for you to undertake the bingo calling.

Relevant legislative provisions: Section 6-5 of the Income Tax Assessment Act 1997 | Section 6-10 of the Income Tax Assessment Act 1997 | Subsection 15-2(1) of the Income Tax Assessment Act 1997

Reasons for decision: Summary: Assessable income includes amounts considered to be ordinary income, as outlined under section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997), and amounts that may not be considered ordinary income but are assessable as statutory income, as outlined in under section 6-10 of the Income Tax Assessment Act 1997 (ITAA 1997). Subsection 15-2(1) of the ITAA 1997 includes as statutory income allowances, gratuities, compensations, benefits, and premiums paid in respect of employment or services rendered by a person. Whilst volunteers are not considered 'employees' amounts paid for 'services rendered' may be considered statutory income. Where the fees paid to you as a volunteer are considered to be reimbursements of out-of-pocket expenses, the payments will not be assessable. Whether a payment to a volunteer is assessable income will depend on the nature of the payment and the recipient's circumstances. A payment to a volunteer that is not assessable will have many of the following characteristics: i. the payment is to meet expenses incurred or expected to be incurred ii. the payment has no connection to the recipient's income-producing activities or services rendered iii. the payment is not received as remuneration or as a consequence of employment iv. the payment is not relied upon or expected by the recipient for day-to-day living v. the payment is not legally required or expected vi. there is no obligation on the part of the payer to make the payment, and vii. the payment is a token amount compared to the services provided or expenses incurred by the recipient. These characteristics match many of the circumstances of your bingo calling activities and indicate that the payments you receive as a volunteer are not assessable under sections 6-5 or 6-10 of the ITAA 1997.