The Commissioner of Taxation, Chris Jordan, gives notice of the following Rulings, copies of which can be obtained from ato.gov.au/law.
NOTICE OF RULING |
Ruling number | Subject | Brief description |
CR 2020/23 | Australian Football League Players’ Association – AFLW competition education and training grants | This Ruling sets out the income tax and fringe benefits tax consequences of amounts received by current or former members of the Australian Football League Players’ Association under the Australian Football League Women’s Education and Training Grant Program. This Ruling applies from 1 November 2019 to 1 November 2022. |
NOTICE OF ADDENDUM |
Ruling number | Subject | Brief description |
TR 2019/5 | Income tax: effective life of depreciating assets (applicable from 1 July 2019) | This Addendum amends Taxation Ruling TR 2019/5 to update incorrect page numbers and to change the description of certain depreciating assets listed in the oil and gas extraction industry back to their previous determination. This Addendum applies on and from 1 July 2019. |
Overview
The Australian Taxation Office (ATO) has issued rulings under the Income Tax Assessment Act 1997 to clarify the tax treatment of payments made under the Australian Football League Women's Education and Training Grant Program. The program is designed to support the professional development of players in the AFL Women's competition, and the ruling, CR 2020/23, applies to payments made between 1 November 2019 and 1 November 2022. The ruling aims to provide certainty to current and former members of the Australian Football League Players’ Association regarding the income tax and fringe benefits tax implications of these grants. Additionally, an Addendum to Taxation Ruling TR 2019/5 corrects errors and revises descriptions of certain depreciating assets related to the oil and gas extraction industry, effective from 1 July 2019. These rulings were introduced to address the need for clear guidance on specific tax treatments within the evolving landscape of professional sports and industry-specific asset depreciation.
Scope and Application
The Commissioner of Taxation has issued a Ruling and an Addendum that apply to specific aspects of the income tax framework for the period between 1 November 2019 and 1 July 2019. Ruling CR 2020/23 pertains to the Australian Football League Players’ Association and addresses the income tax and fringe benefits tax implications of education and training grants awarded under the Australian Football League Women's Education and Training Grant Program. This Ruling is applicable to current and former members of the Association receiving such grants within the specified timeframe. The Addendum TR 2019/5, which amends Taxation Ruling TR 2019/5, corrects earlier errors and reverts certain descriptions of depreciating assets in the oil and gas extraction industry back to their prior determination. This Addendum applies from 1 July 2019, providing clarity and adjustments to the tax obligations of entities within this industry. Both the Ruling and the Addendum are integral to ensuring that affected parties understand and comply with the relevant tax laws during their respective periods of application.
Key Provisions
The primary operative sections of the C2020G00324 Gazette notice are CR 2020/23 and TR 2019/5. Section CR 2020/23 (paragraph 1) provides guidance on the income tax and fringe benefits tax implications for current or former members of the Australian Football League Players’ Association who receive funds under the Australian Football League Women’s Education and Training Grant Program. This ruling is applicable from 1 November 2019 to 1 November 2022, clarifying how such grants are treated for tax purposes during this period. Section TR 2019/5 (paragraph 2) amends Taxation Ruling TR 2019/5 to correct inaccuracies in the page numbers and to revert the description of certain depreciating assets in the oil and gas extraction industry to their prior determinations. This Addendum is effective from 1 July 2019.
The obligations and requirements imposed by these sections are primarily informational and directive. Section CR 2020/23 (paragraph 1) requires that any payments made under the AFLW Education and Training Grant Program be correctly classified and taxed as either income or a fringe benefit, depending on the circumstances. This ensures compliance with the tax laws for the specified period. Section TR 2019/5 (paragraph 2) mandates that taxpayers and tax practitioners use the corrected and updated information provided in the Addendum for determining the effective life of depreciating assets within the oil and gas extraction industry. This includes accurately applying the amended descriptions and page numbers to avoid misclassification and potential tax discrepancies.
For breaches of the provisions outlined in these rulings, there are potential civil and criminal consequences. While the Gazette notice does not specify maximum penalties, breaches of income tax and fringe benefits tax laws can result in penalties such as fines, interest on unpaid taxes, and potential prosecution for serious or deliberate non-compliance. The Commissioner of Taxation, Chris Jordan, has the authority to take action against individuals or entities found to be in breach of these provisions. Non-compliance with the correct classification and reporting of depreciating assets could lead to similar penalties, including financial penalties and potential legal action for misrepresentation in tax filings.