Disclaimer
This edited version will be removed from the Database after 30 September 2025. If you believe the issues detailed in this edited version warrant retention in an alternative form, email publicguidance@ato.gov.au

This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of private ruling

Authorisation Number: 1011569091520

This edited version of your ruling will be published in the public Register of private binding rulings after 28 days from the issue date of the ruling. The attached private rulings fact sheet has more information.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. Contact us at the address given in the fact sheet if you have any concerns.

Ruling

Subject: Tools and materials purchased for class project

Are you entitled to a deduction for the purchase of tools and materials to be used by your students in a class project?

Yes.

This ruling applies for the following period

Year ending 30 June 2011

The scheme commenced on

1 July 2010

Relevant facts

You are employed in the support unit as a teacher.

The unit has introduced a class project for the students, consisting of a theory component and a practical component. You have donated equipment for the students to work on as a class project.

Due to limited funding you will be purchasing tools and materials for the students to enable them to work on the project during class hours.

These items are not used for private purposes.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1

Reasons for decision

For your expenses to be deductible you must satisfy the conditions of section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997). This provision allows a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income except where the outgoings are of a capital, private or domestic nature.

Taxation Ruling TR 95/14 provides guidance on work-related deductions for employee teachers.

A deduction is only allowable if an expense:

Paragraph 205 of TR 95/14 states that a deduction is allowable for expenditure incurred on items or teaching aids used in the everyday duties of an employee teacher.

Consequently, you are allowed a deduction under section 8-1 of the ITAA 1997 for the purchase of tools and materials used by your students in a class project.

Substantiation

To claim a deduction for the expenses, you will need to have written evidence to substantiate the expenses (for example receipts).

The document or receipt must set out:

Further information on substantiation is available on the ATO website www.ato.gov.au and in TaxPack 2010.

Copyright notice

© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).