Class Ruling CR 2021/58, issued on Wed 1.9.2021, considers the tax treatment of amounts paid to Tennis Australia officials for participating in non-professional tennis tournaments.
The ATO notes that historically (presumably pre-COVID-19), Tennis Australia engaged over 500 officials per year. The average amount paid each year to an official was $2,566 for around 21 days of officiating. Unsurprisingly, the ATO concludes that officials who participate in non-professional events are merely engaged in a pastime or hobby. Factors taken into account in reaching this conclusion include the absence of an employment contract, the “extremely ad hoc and seasonal” nature of officiating and the fact that the payment does not usually cover an official’s expenses. Accordingly, tournament fees received are not assessable, while expenses incurred in connection with officiating activities are not deductible. [LTN 168, 1/9/21]
[Would it have been the other way around, if that favoured the revenue?[
[Tax Month – September 2021] 3.10.21