ATO Interpretative Decision
ATO ID 2002/767 (Withdrawn)
Assessability of attendant care allowance paid under the Safety Rehabilitation and Compensation Act 1988
FOI status: may be released
Status of this decision: Decision withdrawn 22 September 2017.
|CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.|
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Is an attendant care allowance paid to a taxpayer by the Commonwealth Department of Veterans' Affairs in accordance with section 29 of the Safety Rehabilitation and Compensation Act 1988 (SRCA), assessable income under section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Yes. The attendant care allowance received by the taxpayer from the Commonwealth Department of Veterans' Affairs for providing attendant care services are included in their assessable income under section 6-5 of the ITAA 1997.
The Commonwealth Department of Veterans' Affairs pays an attendant care allowance to the taxpayer in accordance with section 29 of the SRCA.
The allowance is paid monthly for attendant care services provided by the taxpayer for their spouse.
Reasons for Decision
Section 6-5 of the ITAA 1997 provides that the assessable income of a resident taxpayer includes ordinary income derived directly or indirectly from all sources during the income year.
However, subsection 6-15(2) of the ITAA 1997 provides that if an amount is exempt income then it is not assessable income.
Ordinary income has generally been held to include three categories, namely, income from rendering personal service, income from property and income from carrying on a business.
As the regular periodical amounts received by the taxpayer are payments for personal services they have rendered in caring for their spouse, they are income according to ordinary concepts and therefore ordinary income.
Subdivision 52-B of the ITAA 1997 exempts from income tax an attendant allowance paid under section 98 of the Veterans' Entitlements Act 1986 (VEA). An attendance allowance that is paid under that provision is for specific war-caused injuries or war-caused diseases payable to a veteran who is entitled to a veterans' pension under Part II of the VEA.
Although the taxpayer receives an attendant care allowance from the Commonwealth Department of Veterans' Affairs, the allowance is paid under section 29 of the SRCA not section 98 of the VEA. There is no corresponding provision in the Income Tax Assessment Act 1936 or ITAA 1997 that exempts an attendant care allowance paid under section 29 of the SRCA. The attendant care allowance received by the taxpayer is therefore assessable income under section 6-5 of the ITAA 1997.
|Date of Amendment
|27 February 2015
||Reasons for Decision
||Minor grammatical amendment
Date of decision: 10 April 2002
|Year of income:||Year ending 30 June 2002|
| ||Year ending 30 June 2003|
Income Tax Assessment Act 1997
Safety Rehabilitation and Compensation Act 1988
Veterans' Entitlements Act 1986
Related ATO Interpretative Decisions
ATO ID 2001/798
Siebel/TDMS Reference Number: DW428903; 1-6DKAHSI
Business Line: Small Business/Individual Taxpayers
Date of publication: 31 July 2002
|ATO ID 2002/767 (Withdrawn) history