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Edited version of private advice
Authorisation Number: 1051614308843
Date of advice: 2 December 2019
Ruling
Subject: Work related expenses
Question
Are you entitled to a deduction for the expenses you have queried that relate to maintaining a public profile as a local government councillor?
Answer
Yes
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. The expenses you have queried have a direct relationship to the earning of your assessable income as a local government councillor and are not considered to be of a capital or private nature. Therefore, you are entitled to claim a deduction for them.
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ending 30 June 20XX
Year ending 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
You earn income from your position as a local government councillor.
You have queried the following expenses you have incurred to maintain your active public profile and significant community involvement as a local government councillor:
· Membership of the local Chamber of Commerce
· Sponsorship of several local sporting and community groups, in addition to providing awards and bursaries for local schools. No family members are members of the sponsored organisations.
· Payment to a marketing business to create and manage social media posts which provide coverage of the work you do as a local government councillor, and promote local government events. The target audience are your direct constituents. None of the posts are personal or private in nature for your friends or family.
· Advertising to promote your attendance at local events.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1