Taxation Ruling
IT 2187
Income tax : effect of educational, social security and training payments on income tax liability
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Please note that the PDF version is the authorised version of this ruling.
FOI status:
May be releasedFOI number: I 1124048PREAMBLE
This office was asked recently to provide advice on the extent to which certain educational, social security and training payments made by the Commonwealth Government were liable to income tax.
RULING
2. The attached schedule lists the various payments and indicates the extent to which they are considered to represent assessable income. The schedule also indicates whether the payments are to be treated as separate net income for concessional rebate purposes.
3. Some of the education and training schemes sponsored by the Commonwealth Government provide for specific re-imbursement of expenditure on books, fares, equipment etc. The amounts re-imbursed are neither assessable income nor separate net income and have not been included in the schedule.
4. In some cases payments which are made to one person are shown on the schedule to be separate net income of another person. This generally occurs where a payment is made to a parent, guardian, etc. on behalf of a child and there is a requirement that the payment be applied solely for the maintenance, training, advancement etc. of the child in respect of whom it is granted. It is because of this requirement that payment is regarded as the separate net income of the child.
5. This ruling is based on the criteria for payment which exist at the present time. Any significant alteration in the criteria for payment may well affect the income tax position notified in the schedule.
6. The following abbreviations are used in the schedule:-
- P
- Parent/Provider/Guardian
- B
- Student/Beneficiary/Trainee
- I
- Income according to ordinary concepts
COMMISSIONER OF TAXATION
30 August 1985
APPENDIX
| ALLOWANCE, BENEFIT OR PENSION | PAID TO | TAXABLE | AUTHORITY | SEPARATE NET INCOME |
|---|---|---|---|---|
| EDUCATION | ||||
| Aboriginal Secondary Grants | P | No | 23(z) | Yes of B |
| Aboriginal Study Grants Scheme | B | No (where full-time student) | 23(z) | Yes |
| Adult Migrant Education Scheme | B | No | 23(z) | Yes |
| Adult Secondary Education Assistance Scheme | B | No | 23(z) | Yes |
| Assistance for Isolated Children Scheme | P | No | 23(zaa) | No |
| Immigration Maintenance Allowance | P or B | No | 23(z) | Yes of B |
| Living Allowance for Migrants | B | No | 23(z) | Yes |
| Post Graduate Awards | B | Yes | 23(z)(iv) | Yes |
| Secondary Allowance Scheme | P | No | 23(zaa) | Yes |
| Soldier's Children Education | P or B | No | 23(z) | Yes of B |
| Tertiary Education Assistance Scheme | B | No | 23(z) | Yes |
| SOCIAL SECURITY | ||||
| Dependant Children's Allowance | B | No | 23AD | Yes |
| Double Orphan's Pension | P | No | 23AD | Yes of B |
| Family Allowance | P | No | 23AD | No |
| Family Income Supplement | P | No | 23AD | No |
| Handicapped Child's Allowance | P | No | 23AD | No |
| Incentive Allowance | B | No | 23AD | Yes |
| Invalid Pension | B | No* | 23AD | Yes |
| Mobility Allowance | B | No | 23AD | Yes |
| Mother's/Guardian's Allowance | B | No | 23AD | Yes |
| Pensioner Beneficiaries Families Allowance | P | No | 23AD | Yes |
| Rehabilitation Allowance | B | No | 23AD | Yes |
| Sheltered Employment Allowance | B | No | 23AD | Yes |
| Sickness Benefit | B | Yes | I | Yes |
| Sole Parent Beneficiaries Allowance | B | No | 23AD | Yes |
| Sole Parent Pensioners Allowance | B | No | 23AD | Yes |
| Special Benefit | B | Yes | I | Yes |
| Supplementary (rental) | B | No | 23AD | Yes |
| Supplementary Rental Assistance | B | No | 23AD | Yes |
| Unemployment Benefit | B | Yes | I | Yes |
| Widow's Pension and Supporting Parents Benefits (Sole Parents Pension) | B | Yes | I | Yes |
| TRAINING | ||||
| Commonwealth Rebate for Apprentice Full-time Training (CRAFT-LAFHA) | B | Yes | I | Yes |
| Community Youth Special Project | B | Yes | I | Yes |
| Community Youth Support Project | B | Yes | I | Yes |
| General Training Assistance | B | Yes | I | Yes |
| Labour Adjustment Training Arrangements | B | Yes | I | Yes |
| Pre-Apprenticeship Allowance | B | No | 23(z) | Yes |
| Skills in Demand | B | Yes | I | Yes |
| Special Assistance Program | B | Yes | I | Yes |
| Special Training for Aboriginals | B | Yes | I | Yes |
| Special Training for the Disabled | B | Yes | I | Yes |
| Volunteer Youth Program | B | Yes | I | Yes |
| * Male under 65 female under 60 exempt income | ||||
| Male 65 and over female 60 and over assessable income | ||||