ATO Interpretative Decision
ATO ID 2001/342 (Withdrawn)
Income Tax
Deduction for services provided by a home help serviceFOI status: may be released
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This ATO ID is a straight application of the law and does not contain an interpretative decisionThis document incorporates revisions made since original publication. View its history and amending notices, if applicable.
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Is the taxpayer entitled to claim a deduction for the cost of employing a home help service under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Decision
No. The taxpayer is not entitled to a deduction for the cost of employing a home help service under section 8-1 of the ITAA 1997.
Facts
The taxpayer receives a superannuation pension and a government pension. The taxpayer also receives a Carers Allowance from Centrelink.
The taxpayer employed a home help service because of ill health.
Reasons for Decision
Section 8-1 of the 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.
The expenditure on home help services is not incurred in the course of gaining or producing assessable income. That is, the expense was not incurred in order to produce income from a superannuation or government pension, or a Carers Allowance from Centrelink.
In addition, the expenses directly relate to the taxpayer's personal circumstances (their health) and can therefore be characterised as being private or domestic in nature.
The cost of employing a home help service by the taxpayer is therefore not deductible under section 8-1 of the ITAA 1997.
Date of decision: 27 August 2001
Legislative References:
Income Tax Assessment Act 1997
section 8-1
Keywords
Deductions & expenses
ISSN: 1445-2782
| Date: | Version: | |
| 27 August 2001 | Original statement | |
| You are here | 3 March 2006 | Archived |