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Edited version of your written advice
Authorisation Number: 1012917757149
Date of advice: 25 November 2015
Ruling
Subject: Work related expenses - vaccinations and blood tests
Question 1
Are you entitled to a deduction for the cost of vaccinations for blood borne viruses?
Answer
No
Question 2
Are you entitled to a deduction for the cost of blood tests to be aware of your infection status for blood borne viruses which is a regulatory requirement for you to continue your work?
Answer
Yes.
This ruling applies for the following period:
Year ended 30 June 2016
The scheme commences on:
1 July 2015
Relevant facts and circumstances
You are a health care professional.
It is a regulatory requirement that you are aware of your infection status for blood borne viruses.
These requirements are listed in your industry guidelines.
You have regular tests for blood borne viruses.
You also have had vaccinations since commencing employment.
You incur a cost for these expenses.
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 nature, private or domestic nature.
Vaccinations
In general, a deduction is not allowable for the cost of vaccinations to protect against infectious diseases in the work place as this is a personal medical expense and, therefore, of a private nature.
For example paragraph 217 of TR 95/15 for nursing industry workers and paragraph 170 of Taxation Ruling TR 95/19 (for airline employees) state:
A deduction is not allowable for the cost of vaccinations to protect nursing employees against the risk of contracting infectious diseases in the work place as the expense relates to a personal medical expense, and is therefore of a private nature.
A deduction is not allowable for the cost of vaccinations to protect airline employees at risk from infectious diseases in the work place as the expense relates to a personal medical expense, and is therefore of a private nature.
However, in Mansfield v. FC of T 96 ATC 4001; (1995) 31 ATR 367, the Federal Court of Australia decided that expenses of a private or personal nature may be an allowable deduction where the working environment is sufficiently abnormal and unique as to make the essential character of the expenditure work-related rather than private in nature. Whether such an expense is either private or work-related involves questions of fact and degree, and something out of the ordinary is usually necessary for the essential character of the expenditure to be seen as work-related.
In addition, paragraph 11 of Taxation Ruling TR 2003/16 (about the deductibility of protective items) provides one indicator of the deductibility of a protective item is if your use of a protective item is a requirement of your employer, work-related safety laws or an industrial agreement. Where it is a requirement of your employer, work related safety laws or an industrial agreement for you to use protective items.
In this instance, your industry guidelines do not have a requirement for you to be vaccinated in order to continue working.
In light of the principles outlined above, the costs of having the vaccinations are private in nature. Therefore, you are not entitled to claim a deduction for this expenditure under section 8-1 of the ITAA 1997.
Blood Tests
Generally medical expenses have no direct connection to the gaining or producing of assessable income and a deduction is not allowable. Medical expenses are usually a prerequisite to the earning of assessable income and relate to a personal medical condition and are private in nature.
In your case, the medical expenses incurred for regular tests for blood borne viruses are a regulatory requirement for your industry.
You are required to be aware of your infection status for blood borne viruses for your work. As such, it can be said that the expenses for the tests are expenses incurred in gaining and producing your assessable income. Therefore you are entitled to a deduction for the fees paid in order to confirm your infection status.