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Edited version of private advice
Authorisation Number: 1012684181217
Ruling
Subject: Work related medical expenses
Question
Are you entitled to claim a work related deduction for medical expenses you incurred while undergoing eye surgery?
Answer
No.
This ruling applies for the following period:
Year ended 30 June 2014
The scheme commences on:
1 July 2013
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
Your employer requires all employees to wear certified safety glasses when onsite. Any prescription safety glasses must comply with regulation.
Your previous prescription glasses worn onsite did not comply with the guidelines and the optometrist providing them was unable to certify them as such.
You are unable to wear contact lenses due to irritation and adverse reaction to your eyes.
You underwent eye surgery to enable you to wear your employer's standard regulation safety glasses.
Relevant legislative provisions
Income Tax Assessment Act 1997 (ITAA 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.
Generally medical expenses have no direct connection to the gaining or producing of assessable income. The expense relates to overcome a personal medical condition and is private in nature. There is insufficient connection to the gaining or production of assessable income for a deduction to be allowed as the expenditure is too remote.
In your case, you incurred significant medical expenses while undergoing eye surgery to enable you to wear your employer's safety glasses and consequently continue employment with them. The need for this stems from your personal condition that requires you to wear eyewear.
Paragraph 6 of Income Tax Ruling IT 2217 states that although a taxpayer may not be able to earn their assessable income without the aid of a medical appliance, the expense incurred is not considered to be incurred in gaining assessable income, but rather incurred to overcome a medical condition.
It is considered that the result of the surgery will help you to overcome your impaired vision rather than to earn assessable income. Accordingly, the expenditure you incurred in undergoing surgery is not deductible as the expense is essentially private in nature and not incurred in gaining or producing assessable income - even though your intention was to enable you to continue in your current capacity with your employer.
Therefore, you are not able to claim a deduction of the medical expenses incurred with regards to undergoing eye surgery under section 8-1 of the ITAA 1997.