ATO Interpretative Decision

ATO ID 2002/851 (Withdrawn)

Income Tax

Deduction for cost of purchasing sunscreen
FOI status: may be released

This ATO ID is superseded by Taxation Ruling TR 2003/16

This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 a taxpayer entitled to a deduction for the expenses incurred in purchasing sunscreen under section 8-1 of the Income Tax Assessment Act 1997 ('ITAA 1997') where they are required to work outdoors for extended periods?

Decision

Yes. A taxpayer is entitled to a deduction under section 8-1 of the ITAA 1997 for the expenses incurred in purchasing sunscreen, to the extent that it is not used for private purposes, as the expenditure has been incurred in gaining or producing their assessable income.

Facts

In order to earn their income the taxpayer is required to be outdoors and exposed to the sun for extended periods.

To protect themselves from the sun they wear sunscreen.

They purchased the sunscreen themselves.

Reasons for Decision

Section 8-1 of the ITAA 1997 allows a deduction for all losses or outgoings to the extent to which they are incurred in gaining or producing assessable income, except to the extent that they are outgoings of a capital, private or domestic nature.

Following the decision in Morris and Ors v. Federal Commissioner of Taxation [2002] FCA 616; (2002) 50 ATR 104; 2002 ATC 4404; it is accepted that sunscreen worn while working protects the taxpayer from the risk of illness or injury from exposure to the sun therefore enabling the taxpayer to earn their assessable income. Therefore there is a clear connection between the expenditure incurred and the earning of the assessable income.

Apportionment of the expense will be necessary if the items are used partly for private purposes.

The taxpayer is entitled to a deduction under section 8-1 of the ITAA 1997 for the cost of purchasing sunscreen as it was incurred in gaining or producing assessable income.

Date of decision: 16 August 2002

Year of income: Year ended 30 June 2002

Legislative References:
Income Tax Assessment Act 1997
section 8-1

Case References:
Morris and Ors v. Federal Commissioner of Taxation
    [2002] FCA 616 (2002)
   (2002) 50 ATR 104
   2002 ATC 4404

Related ATO Interpretative Decisions
ATO ID 2002/855

Keywords
Deductions & expenses
Protective clothing
Protective equipment
Sunscreen preparation
Work related expenses

Business Line: Small Business/Individual Taxpayers

Date of publication: 23 August 2002

ISSN: 1445-2782

history

	Date:	Version:
	16 August 2002	Original statement
You are here	22 October 2004	Archived

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