| Disclaimer This edited version has been archived due to the length of time since original publication.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 private ruling
Authorisation Number: 1012020506436
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. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.
Ruling
Subject: Work related expenses - Obtaining a manual licence
Question
Are you entitled to a deduction for the expenses incurred in obtaining your manual driver's licence?
Answer
No.
This ruling applies for the following period
Year ended 30 June 2011
The scheme commenced on
1 July 2010
Relevant facts
A large part of your employment involves field work.
The company you work for has manual four wheel drive vehicles that are used for this field work.
You held a restricted automatic licence.
It is a requirement in your state that you must re-sit and pass a practical driving test in a manual vehicle to remove the automatic licence restriction.
You have incurred expenses in undertaking driving lessons and testing; you have provided copies of these receipts.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1
Reasons for decision
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.
Taxation Ruling TR 95/18 states that a deduction is not allowable for the cost of obtaining or renewing a driver's licence as it is a private expense. Paragraph 77 of TR 95/18 explains that while the holding of a drivers licence may be a condition of employment, it does not follow that the licence fees are deductible. This principle is confirmed in Taxation Determination TD 93/108.
In Case R49 84 ATC 387; 27 CTBR(NS) Case 104, it was held that even though travel was an essential element of the work to be performed by the taxpayer, a driver's licence was still an expense that was private in nature and the cost was not an allowable deduction.
As the cost of the licence is private in nature it follows that any expense associated in obtaining the licence such as driving lessons, is also considered to be a private expense.
In your case, you have incurred expenses to obtain a licence to drive a manual vehicle. The cost of the lessons relates to the entitlement to drive a manual vehicle on public roads. The expenses associated with obtaining your manual licence, including driving lessons and tests are considered to be private in nature. Therefore, you are not entitled to a deduction.