Insurance for EA Officials
When EA Officials are working at the events of EA Insured clubs they are covered as volunteers under the EA Club Insurance policy. A copy of the policy can be accessed on the EA website.
EA is not able to comment on the insurance coverage provided by other organisations. Should an official be working at an event run by another organisation, it is up to the Official to talk to that organisation to ensure that organisation’s insurance policy will cover them.
EA officials working as volunteers at EA Affiliated/Licensed events (with insurance elsewhere) who are concerned that organisation does not provide them coverage, there is now a “top-up” cover available at a small premium.
This supplementary insurance being offered to EA accredited officials will allow them to exercise these credentials at events that are not covered under the EA Club Insurance Policy.
The application form is available for download from the EA website or by contact the National Office.
The definition of a volunteer for EA purposes has been formulated based on the Australian Tax Office “Volunteers and Tax – Treatment of Transactions between Non-Profit Organisations and Volunteers”.
Volunteers can be paid in cash, given non-cash benefits or given a combination of both cash and non-cash benefits.
These payments are given various descriptions, including honoraria, reimbursements and allowances. Sometimes they are given no name at all.
How an amount is described does not determine its treatment for tax purposes. Whether a payment is assessable income in the hands of a volunteer depends on the nature of the payment and the recipient’s circumstances.
Generally, receipts which are earned, expected, relied upon and have an element of periodicity, recurrence or regularity are treated as assessable income.
Where a person’s activities are a pastime or hobby rather than income-producing, money and other benefits received from those activities are not assessable income.
A payment to a volunteer that is not assessable will have many of the following characteristics:
· The payment is to meet incurred or anticipated expenses.
· The payment has no connection to the recipient’s income-producing activities or services.
· The payment is not received as remuneration or as a consequence of employment.
· The payment is not relied upon or expected by the recipient for day-to-day living.
· The payment is not legally required or expected.
· There is no obligation on the part of the payer to make the payment.
· The payment is a token amount compared to the services provided or expenses incurred by the recipient. Whether the payment is token depends on the full facts surrounding the payment and recipient’s circumstances.
Those who are concerned that they do not fit into the criteria as a “volunteer” should seek clarification from their accountant/solicitor and potentially seek additional insurance, which can be obtained at a competitive price via AON.