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Edited version of your written advice
Authorisation Number: 1012724183499
Ruling
Subject: Remedial massage and osteopathic treatments
Question
Are you entitled to a deduction for the cost of remedial massage and osteopathic treatments?
Answer
No.
This ruling applies for the following period
Year ended 30 June 2014
The scheme commenced on
1 July 2013
Relevant facts
You are an instructor.
You are required to maintain your fitness.
You incur expenses for remedial massage and osteopathic treatments.
You have provided a letter from your doctor which stated that the treatments would be deemed part of the costs involved in maintaining your fitness.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1
Reasons for decision
Section 8-1 of the Income Tax 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, or relate to the earning of exempt income.
The courts have considered the meaning of 'incurred in gaining or producing assessable income'. In Ronpibon Tin NL Tong Kah Compound NL v. Federal Commissioner of Taxation (1949) 78 CLR 47; 56 ALR 785; 8 ATD 431 the High Court stated that:
For expenditure to form an allowable deduction as an outgoing incurred in gaining or producing assessable it must be incidental and relevant to that end. The words "incurred in gaining or producing the assessable income" mean in the course of gaining or producing such income.'
In your case, your relevant income producing activities are considered to be instructing. Remedial massage and osteopathic treatment expenses have no direct connection to actually doing your job. Rather, the expenses are aimed at maintaining your personal fitness to enable you to then carry out your income producing activity.
In addition, remedial massage and osteopathic treatment expenses can be characterised as being of a private nature and therefore can also be excluded on that ground.
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