EDITED VERSION OF NOTICE OF PRIVATE RULING
Authorisation Number: 34304
This Ruling is a 'Private Ruling' for the purposes of Part IVAA of the Taxation Administration Act 1953.
YEAR(S) OF INCOME TO WHICH THIS RULING APPLIES:
TAX LAW:
Income Tax Assessment Act 1997 section 8-1.
Income Tax Assessment Act 1997 section 900-115.
WHAT THIS RULING IS ABOUT:
1. Are you entitled to a deduction for the full cost of protective clothing used in the course of your duties?
2. If no, are you entitled to a deduction for depreciation on the cost of the protective clothing?
THE SUBJECT OF THE RULING:
You purchased protective clothing for use in your employment. The total cost exceeded $300.
Your employer has not given you an allowance or reimbursement for the cost of the protective clothing.
You have kept receipts for the purchase of this protective clothing.
COMMENCEMENT OF ARRANGEMENT:
1 July 2002
RULING:
1. Are you entitled to a deduction for the full cost of protective clothing used in the course of your duties?
Yes.
2. If no, are you entitled to a deduction for depreciation on the cost of the protective clothing?
Not applicable.
EXPLANATION: (This does not form part of the Notice of Private Ruling)
Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 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.
An occupation based Taxation Ruling applies to employees in your field of employment. The Ruling discusses the assessability of allowances and reimbursements and deductions for work-related expenses generally claimed by employees in your field.
The Ruling allows a deduction for the cost of your type of protective clothing bought for work, as they are considered to be protective equipment.
The substantiation provisions under Subdivision 900B of the ITAA 1997 provides that a taxpayer must retain written evidence to prove their claims in respect of work-related expenses if their total claims exceed $300. The records to be kept must prove the total amount, not just the amount over $300. The documentary evidence required for expenses other than depreciation comprises a receipt, invoice or similar documentation from the supplier that sets out the name or business name of the supplier, the amount of the expense, the nature of the goods or service, the date the expense was incurred and date of the document.
In your case, you purchased protective clothing to use in the course of your duties. The cost of the protective clothing is in excess of $300; however, you have retained the necessary documentation (receipts) to substantiate the expense you incurred.
Consequently, you are entitled to claim the full cost of your protective clothing as a work related expense.
Disclaimer
The Register of Private Binding Advice is published as a public record of the binding advice issued by the ATO. Each piece of advice is based on a specific set of circumstances advised to the ATO and the law in force at the time of the advice, and is considered binding only in respect of the person/s or entity/ies on whose behalf the advice was sought. The Register is a historical record of advice provided, and is not updated to reflect changes in the law, withdrawal of advice or any other change in circumstance. Each piece of advice has been edited to avoid disclosing the identity of the person or entity on whose behalf advice was sought and published advice may therefore not disclose all the relevant facts or circumstances on which the advice was based. For these reasons, advice published in this Register cannot be relied upon as precedent for any other person or entity.