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Edited version of private ruling
Authorisation Number: 1011833695718
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.
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Ruling
Subject: Newspaper subscription expenses
Question
Are you entitled to a deduction for the website subscription expense?
Answer: No
This ruling applies for the following period
Income year ended 30/06/2010
The scheme commences on:
1 July 2009
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You as trustee for a Superannuation Fund have subscribed to a newspaper's website.
You have stated you obtained this subscription in order to monitor and control the investments of the superannuation fund.
You are employed in your own capacity in an isolated location and you have stated this is often your only source of information.
You have incurred expenses in respect of this subscription.
Relevant legislative provisions
Income Taxation Assessment Act 1997, section 8-1
Reasons for decision
Section 8-1 of the Income Taxation Assessment Act 1997 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.
A deduction is not allowable for the cost of newspapers and magazines, as they are considered a private expense. While a taxpayer may be able to use part of the information in the course of their work, the benefit gained is usually remote and the proportion of the expense that relates directly to work is incidental to the private expenditure: Case P30 82 ATC 139; 25 CTBR (NS) Case 94 and Case P114 82 ATC 586; 26 CTBR (NS) Case 47.
You are not entitled to a deduction for the subscription costs in respect of the website as it is considered simply online access to a newspaper and is therefore private in nature.
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