Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-5 - RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS  

Division 25 - Some amounts you can deduct  

Operative provisions  

SECTION 25-130   Standard deduction for work-related expenses  

25-130(1)    
You can deduct the amount provided by subsection (2) for an income year if:

(a)    you are an individual; and

(b)    you are an Australian resident at any time during the income year; and

(c)    you derive * assessable labour income in the income year.

25-130(2)    
The amount is the lesser of:

(a)    $ 1,000; and

(b)    the total amount of your * assessable labour income for the income year;

reduced, but not below zero, by the sum of the following amounts (if any):

(c)    subject to subsection (3) , each of your deductions for the income year under section 8-1 (general deductions), to the extent that the loss or outgoing that gives rise to the deduction is incurred in gaining or producing your assessable labour income;

(d)    each of your deductions for the income year under Division 28 (car expenses), to the extent that the deduction arises in respect of gaining or producing your assessable labour income;

(e)    each of your deductions for the income year under section 25-100 (travel between workplaces), to the extent that either of the following is satisfied in relation to the deduction:

(i) while you were at the first place mentioned in paragraph 25-100(2)(a) , you were engaged in activities to gain or produce your assessable labour income;

(ii) while you were at the second place mentioned in paragraph 25-100(2)(b) , you were engaged in activities to gain or produce your assessable labour income;

(f)    each of your deductions for the income year under any of the following provisions, to the extent that the deduction arises in respect of a * depreciating asset that is used for the purpose of gaining or producing your assessable labour income:

(i) section 25-10 (repairs);

(ii) Subdivision 40-B (deducting amounts for depreciating assets);

(iii) Subdivision 40-D (balancing adjustments);

(g)    each of your deductions under section 25-125 (COVID-19 tests) for the income year.

25-130(3)    
For the purposes of paragraph (2)(c) , disregard each of your deductions under section 8-1 to the extent that the deduction is in respect of any of the following:

(a)    an income protection insurance premium;

(b)    a personal sickness insurance premium;

(c)    an accident insurance premium;

(d)    membership of a trade, business or professional association.

25-130(4)    
Your assessable labour income , for an income year, is each amount included in your assessable income for the income year from which an amount must be withheld (even if the amount is not withheld) under any of the following provisions in Schedule 1 to the Taxation Administration Act 1953 :

(a)    section 12-35 (payment to employee);

(b)    section 12-40 (payment to company director);

(c)    section 12-45 (payment to office holder);

(d)    section 12-47 (payment to religious practitioners);

(e)    section 12-50 (return to work payment);

(f)    Subdivision 12-C (payments for retirement or because of termination of employment);

(g)    paragraph 12-110(1)(ca) (parental leave pay).