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Edited version of private advice
Authorisation Number: 1012650656063
Ruling
Subject: Student expenses
Question
Are you entitled to a deduction for the costs you pay for your students?
Answer
No.
This ruling applies for the following period
Year ended 30 June 2014
The scheme commenced on
1 July 2013
Relevant facts
You are a teacher.
You take your students on excursions.
Most of the costs associated with these trips are borne by your employer or by the students.
You often pay for some of your students costs.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1
Reasons for decision
Section 8-1 of the Income Tax Assessment Act 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 95/14 Income tax: employee teachers - allowances, reimbursements and work-related deductions states that employee teachers may outlay their own money to supply items to students for their own individual needs, purchase gifts for students, purchase food and drinks for special occasions and replace money lost by students.
While employee teachers may feel a moral, personal or social obligation to outlay these expenses, there is no connection between the expenditure incurred by the employee teacher and the gaining or producing of assessable income and it is also considered to be of a private nature.
Therefore, a deduction is not allowable for the costs you pay for your students.