ATO Interpretative Decision
ATO ID 2002/776
Income Tax
Deductibility of Vaccination Expenses - employersFOI status: may be released
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Please note: This ATO ID was withdrawn in error on 9 May 2014. This error was corrected on 22 August 2014 and this ATO ID has been current since its release.This document has changed over time. View its history.
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Is an employer entitled to a deduction under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) for medical expenses incurred to vaccinate employees against Q fever, which is a well recognised occupational hazard in the cattle industry?
Decision
Yes. The medical expenses are necessarily incurred in carrying on a business for the purpose of gaining the employer's assessable income and are, therefore, deductible in accordance with paragraph 8-1(1)(b) of the ITAA 1997.
Facts
The taxpayer operates a business that requires its employees to be directly exposed to cattle that may be infected with Q fever on a regular basis. Q fever is a well recognised occupational hazard within the cattle industry.
The taxpayer incurred medical expenses to vaccinate employees against Q fever. Only those employees who are likely to come into direct contact with potentially infected animals and who are at most risk of contracting the disease were vaccinated.
Reasons for Decision
Medical expenses incurred by an employer to vaccinate employees who are at risk of contracting Q fever are regarded as arising directly from the employer's income earning activities. Consequently, the medical expenses are of a business nature and an allowable deduction in accordance with paragraph 8-1(1)(b) of the ITAA 1997.
Date of decision: 12 June 2002Year of income: Year ending 30 June 2002
Legislative References:
Income Tax Assessment Act 1997
section 8-1
Paragraph 8-1(1)(b)
Case References:
Mansfield v. FC of T
96 ATC 4001
31 ATR 367
Related Public Rulings (including Determinations)
Taxation Ruling TR 95/8
Taxation Ruling TR 2003/16
ATO ID 2002/775
Keywords
Deductions & expenses
Medical expenses
Occupational health & safety expenses
Employees
ISSN: 1445-2782
| Date: | Version: | |
| You are here | 12 June 2002 | Original statement |
| 22 September 2017 | Archived |