| Disclaimer This edited version has been archived due to the length of time since original publication.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 your written advice
Authorisation Number: 1013044513492
Date of advice: 1 July 2016
Ruling
Subject: Deductions
Question and answer
Are you entitled to a deduction for the costs associated with employing someone to carry out duties as a driver and security?
No.
This ruling applies for the following periods:
Year ending 30 June 2016
Year ending 30 June 2017
Year ending 30 June 2018
Year ending 30 June 2019
Year ending 30 June 2020
The scheme commenced on:
1 July 2015
Relevant facts and circumstances
You are a professional.
Your work requires you to do call outs at night.
You have concerns for your safety.
You want to employ someone to drive you to the location and wait for you to complete your call out and then will drive you home.
You will pay the person a wage for the driving and security services which will be in line with industry standards.
You are not able to perform your duties as a professional if you do not have a driver and security.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1
Reasons for decision
According to section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997), you can deduct a loss or outgoing if it is incurred in producing your assessable income except where the outgoing is of a capital, private or domestic nature.
A driver and security is not required for you to perform your duties as a professional and without these services you are able to still work as a professional.
The provision of a driver to drive you to your nightly call-outs and to provide security while at these call-outs is private in nature and is not an eligible deduction under section 8-1 of the ITAA 1997.
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).
