Taxation Determination

TD 1999/63

Income tax: are officers of military cadets entitled to deductions for expenses incurred in the performance of their duties?

  • Please note that the PDF version is the authorised version of this ruling.

FOI status:

may be releasedFOI number: I 1020871

This Taxation Determination is a 'public ruling' for the purposes of Part IVAAA of the Taxation Administration Act 1953 and is legally binding on the Commissioner. Taxation Rulings TR 92/1 and TR 97/16 together explain when a Determination is a public ruling and how it is legally binding on the Commissioner.
Date of Effect
This Determination applies to years commencing both before and after its date of issue. However, this Determination does not apply to taxpayers to the extent that it conflicts with the terms of settlement of a dispute agreed to before the date of the Determination (see paragraphs 21 and 22 of Taxation Ruling TR 92/20).

1. Yes, expenditure incurred by officers may be deductible under section 8-1 of the Income Tax Assessment Act 1997 where they receive assessable remuneration for the carrying out of these duties.

2. The expenditure is deductible where:

the expense is sufficiently connected to, and is incurred in the performance of, duty as a cadet officer;
the expenditure is not of a private, capital or domestic nature; and
another provision does not prevent the deduction.

3. Depending upon the nature of the cadet corp, officers of cadets usually receive remuneration from the Department of Defence or their employer (e.g., some school teachers are remunerated by the school rather than the Department of Defence) to perform these duties. This remuneration is assessable income. As this remuneration is salary or wages, expenses incurred in earning that income are subject to substantiation.

4. The receipt of an allowance by the officer as a result of his/her employment, does not automatically entitle the officer to a deduction for expenditure incurred in expending that allowance. (See Taxation Ruling TR 92/15 for an explanation of the income tax and fringe benefit tax implications of allowances and reimbursements.)

5. Examples of expenditure that may be incurred include maintenance of uniforms, postage, stationery, telephone calls, training aids, travel, etc.

Previous Rulings

6. The previous Taxation Ruling on this topic, Taxation Ruling IT 2347, is now withdrawn.

Commissioner of Taxation
10 November 1999

Previously issued as TD 1999/D64


ATO references:
NO 99/19372-7
BO 99/10742-1

ISSN 1038 - 8982

Related Rulings/Determinations:

TR 92/15

Subject References:
deductions and expenses

Legislative References:
ITAA 1997 8-1