YACVic is not able to provide legal advice and this information should be read as general and non-specific. At the end of this article we provide some organisations and resources for more information. 

Why is this important to me?

Knowing and being aware of the different forms of payments is important for you if you’re consulting or engaging with places such as youth services, local councils, or government.

Getting paid is an effective way of showing that your time and contributions are valued and appreciated. It also acknowledges the potential consequences of sharing my expertise such as missing a shift at my other job, or the emotional labour of sharing lived experience.

Remuneration is the payment you receive for a service or contribution. Some examples of remuneration include regular salary wages, contract-based wages, and a volunteer payment for a one-off contribution (aka an An honorarium is either: a reward for voluntary services, or a fee for professional services voluntarily performed. An honorarium may be paid in money or in other forms (e.g. EFTPOS gift card).honorarium – more on this later). 

Remuneration is still a pretty new idea among those who work with and engage young people.

There isn’t yet a consistent approach to remuneration, so policies vary between different organisations, local councils, and various levels of government.

As the peak body for the youth sector in Victoria, YACVic believes that youth organisations should aim to remunerate young people as much as possible, whether it’s through employing young people as staff who receive a regular wage or salary, or through providing honorarium payments for non-regular contributions to a project or variety of projects.

The types of payment you receive will be different depending on if you’re participating on an on-going basis (such as a co-design is a practice that brings people with lived experience into a design process.co-design project) or if it’s just a one-time contribution (such as participating in a A consultation is usually a workshop, survey or interview that asks for people's opinions and/or lived experience.consultation or A focus group is usually a workshop that brings a group of people together to give feedback on a specific idea or proposal.focus group).

When you should get paid

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This will depend on the arrangement or contract you have with the organisation and the type of opportunity.

  • If you’re employed by an organisation, then the hourly rate (or wage) will usually be based on an industry ‘award’ that is regulated by the government. Awards are legal documents that outline the minimum pay rates and conditions of employment. They are based on your level of skills and experience and can be negotiated with an employer.

  • If you are a contractor then you will usually have your own rates that you charge for work so this would need to be discussed and confirmed with the organisation.

  • When you are taking on a youth participation opportunity with an honorarium payment, the organisation will usually decide what is a reasonable amount to remunerate you based on the expected number of hours you need to commit to and the level of skill or experience involved. Different opportunities might be remunerated differently.

Whenever payments are involved, you should expect to have this clearly stated before you start the opportunity. If things are unclear or you want to discuss payment, then it is best to contact the organisation to discuss further.

Regular wages and salaries, as well as contract-based wages, payments or honorariums that are provided on a regular basis, or honorariums for a one-off professional service, are generally all regarded as assessable income by the Australian Tax Office (ATO).

Irregular or one-time honorarium payments as a volunteer that do not supplement your income are generally not regarded as assessable income by the ATO. However, it may still be considered assessable income by Centrelink.

YACVic recommends talking about your situation with a financial advisor or Centrelink directly to check if an honorarium will impact your Centrelink payments.

You will have to claim remuneration on your tax return if it is:

  • Your regular wages or salary

  • Contract-based wages or payment

  • Tips and other payments for your services

  • Honorariums for a professional service that is voluntary

  • Honorariums that are regular and therefore boost your income.

You do not have to claim honorariums that are considered an honorary reward for a voluntary service as these aren’t considered taxable income by the ATO. This is something you’ll have to discuss and clarify with your employer.

Example: Honorarium – not assessable income

Tal (he/him) is a 17-year-old student with a casual job at his local supermarket. He occasionally volunteers as an interviewer for his local city council when they are recruiting new staff. This year, he volunteered on 3 interview panels. He attended training and prep meetings, read through applications, and participated in the interview days. Tal is offered an honorarium of $300 per interview day. The honorarium is not assessable income as Tal will be receiving an honorary reward for voluntary services.

Example: Honorarium – assessable income

Sofie (she/they) has a graphic design business and volunteers at her local youth service. Sofie designs some illustrations for a new report the youth service has been working on using her business’s software and equipment. Sofie is offered an honorarium of $300 in appreciation of their services. This honorarium will be assessable income because it’s a reward for services connected to her other regular paid work.

The ATO simple tax calculator could be helpful.

When paying young people, organisations will usually ask you to either:

  • provide an Australian Business Number (ABN) (see section below), or

  • complete a Statement by a supplier form.

This allows the organisation track and monitor payments correctly.

A Statement by a Supplier form should be filled out when:

  • you are an individual (or a business)

  • you have given goods or services (e.g. youth participation opportunity) to another enterprise (the payer/organisation), and

  • you are not required to quote an Australia Business Number (ABN).

On the Statement by a supplier form, when answering the question ‘reason/s for not quoting an ABN’, you can tick whichever box/es suits your circumstances, for example you might tick one or more of:

  • 'The supply is made by an individual or partnership without a reasonable expectation of profit or gain’; and/or

  • ‘The supplier is not entitled to an ABN as they are not carrying on an enterprise in Australia’; and/or

  • ‘Made in the course or furtherance of an activity done as a private recreational pursuit or hobby; '

If you have an Australia Business Number (ABN), you need to provide it when you’re paid by an organisation for a youth participation activity.

You would usually do this by sending the organisation an invoice that clearly states your details, including your ABN. Search for an invoice template.

It’s best to get financial advice before setting up a business but here are some tips taken from Australian Business Register - search ABN entitlement for more on this.

There is no single test to determine if you're carrying on a business. Features of a business include:

  • the activity is a significant commercial activity, involving commercial sales of products or services, and is of a reasonable size and scale

  • there is an intention to make a profit from the activity as demonstrated by a business plan – unlike with a hobby

  • the activity is repeated

  • the activity is systematic, organised and carried on in a business-like way and records are kept

  • the activity is carried on in a similar way to that of other businesses in the same or similar industry

  • the entity has relevant knowledge or skill.

Reimbursement happens when things you had to pay for, aka expenses, during employment or a participation opportunity are covered by the organisation you are working with. This should be discussed clearly before things are paid for, with the organisation providing a clear outline of what they will and will not cover.

Common examples of expenses that are reimbursed may include: travel, accommodation, meals, childcare and training costs.

To be reimbursed, you need to hold onto receipts and tax invoices as evidence that you spent your money on these things. You will need to provide this evidence to the organisation in order to be reimbursed.

As you are being reimbursed for expenses, reimbursements are not assessable income, should not impact your Centrelink and do not need to be declared in your tax return.

Money paid for work or service.

Precise compensation, in part or full, for an expense already incurred, even if the expense has not yet been paid. 

A definite, predetermined amount to cover an estimated expense. It is paid even if the volunteer does not spend the full amount.

An honorarium is either:

  • an honorary reward for voluntary services, or

  • a fee for professional services voluntarily performed.

An honorarium may be paid in money or in other forms (e.g. EFTPOS gift card).

The practice of meaningfully involving young people in decision-making processes. 

Someone with direct or personal experience of something or as a family member or carer who has experience in supporting someone. 

Someone who has provided a good or service.

The ATO (2020) states that “Although there is no legal definition of 'volunteer' for tax purposes, a volunteer does not work under a contractual obligation for remuneration and would not be an employee or independent contractor. So, if any of your workers are not employees or independent contractors, they will be volunteers”.

An Australian Business Number (ABN) is a unique 11-digit identifier issued by the Australian Business Register (ABR) which is operated by the Australian Taxation Office (ATO). The law requires each entity that carries on a business in Australia has an ABN and that the ABN appear on each tax invoice and other tax related documents issued by the entity.

Certain suppliers are not required to quote an ABN to a payer. In these cases, the suppliers can use the SBS form.

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