| Disclaimer This edited version has been archived due to the length of time since original publication.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 private ruling
Authorisation Number: 1011755258462
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.
Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. Contact us at the address given in the fact sheet if you have any concerns.
Ruling
Subject: travel expenses
Question and answer
Is the travel from your home to the medical facility to have treatment a deductable expense?
No.
This ruling applies for the following period
Year ended 30 June 2011
The scheme commenced on
1 July 2010
The scheme that is the subject of the ruling
You have treatment a number of times a week.
You travel from your home to the medical facility to have the treatment.
You need the treatment to be able to continue your work.
You use your car or take a taxis to travel to the medical facility.
Relevant legislative provisions
Income Tax Assessment Act 1997 8-1
Explanation (this does not form part of the 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.
You travel from your home to a medical facility to undergo dialysis treatment three days a week.
To be deductible under section 8-1 an expense must be incurred in producing assessable income. While you must incur the expense of travelling to your treatment, neither the travel or the treatment are part of your work. They are not incurred in carrying out your duties - they are expenses that enable you to work. They are of a similar nature to travel from home to work - essential to allow you to work but not a part of your work. Therefore they are not incurred in earning your assessable income and not deductible under section 8-1 of the ITAA 1997.