VDSE has recently signed up to a Federal Government program whereby they train welfare recipients as apprentices.
Question:
VDSE has recently signed up to a Federal Government program whereby they train welfare recipients as apprentices. VDSE is receiving $20,000 a year from the Federal Government per trainee, they currently have five in addition to their other apprentices.
The issue is whether the $100,000 a year from the Federal Government is assessable as statutory income under Section 15-10 ITAA97
Question
Under 15-10 Your assessable income includes a bounty or subsidy that:
(a) you receive in relation to carrying on a *business; and
(b) is not assessable as *ordinary income under section 6-5.
Now I know that this $100,000 is assessable as statutory income. My question is if someone could explain to me why this scenario is not considered assessable as ordinary income.
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta