The RSL Sporting Club is a not-for-profit community organisation that charges members an annual fee to remain members and to use the various facilities of the club. In the 2023 year, the RSL Sporting Club retuned an amount of $1,000 to each member stating that these amounts were surplus to ongoing maintenance needs. How is the return of this $1,000 to each member likely to be treated under current tax rules?

Question 4Answer

a.

Not assessable unless the ATO finds out about this.

b.

Assessable as cash receipts are nearly always treated as statutory income.

c.

Assessable as cash receipts are nearly always treated as ordinary income.

d.

Not assessable under the principle of mutuality.