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Subject: work related expenses - other - medical
Question
Can you claim a deduction for the medical expenses incurred to renew your heavy vehicle licence?
Answer
Yes
This ruling applies for the following period:
n Year ended 30 June 2011
The scheme commences on:
01 July 2010
Relevant facts and circumstances
You are required to hold a heavy vehicle licence to carry out your employment activities.
You first obtained your heavy vehicle licence approximately ten years ago.
You have worked for your current employer for approximately five years.
You are required to renew your heavy vehicle licence every three years.
You are required to have a medical examination in order to renew your heavy vehicle licence.
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 a loss or outgoing to the extent to which it is incurred in gaining or producing assessable income, except where the loss or outgoing is of a capital, private or domestic nature, or relates to the earning of exempt income.
Taxation Ruling TR 95/19 states that a deduction is allowable for the expenses associated with medical examinations for the renewal of relevant licences. These expenses include the cost of the travel to and from the medical practitioner. Although TR 95/19 deals with airline employees, this part of the taxation ruling can be applied to employees from other industries that are in comparable situations.
In your case, you are required to have a heavy vehicle licence in order to carry out your employment activities as a heavy vehicle driver. This licence has to be renewed every three years and as part of this process you are required to have a medical examination.
Therefore, as this expense is directly related to your employment activities as a heavy vehicle driver, you are entitled to claim a deduction for the medical expenses incurred to renew your heavy vehicle licence for the 2010-11 year of income under section 8-1 of the ITAA 1997.