Taxation Ruling TR 2022/2 Income tax: the games and sports exemption has now been finalised.
Societies, associations and clubs can use this Ruling to help them determine if they are exempt from income tax under the games and sports exemption in section 50-45 of the Income Tax Assessment Act 1997.
This Ruling replaces TR 97/22 Income tax: exempt sporting clubs (TR 97/22).
The ATO view on the application of the games and sports exemption hasn’t changed, however a refresh was needed. This new Ruling:
• contains new examples that that illustrate the factors clubs need to consider to determine if they’re exempt from income tax
• includes the ATO view on how the decision in Word Investments relates to the games and sports exemption.
To view Taxation Ruling TR 2022/2, click here