Taxation Ruling

IT 2314

Income tax : year ending 30 June 1986 - arbitrary limits - deductions under sub-section 51(1)

• Please note that the PDF version is the authorised consolidated version of this ruling and amending notices.
  This document is no longer current as has been Archived.
  View the Archival notice for this document.
  This document has been Withdrawn.
  View the Withdrawal notice for this document.

FOI status:

RULING

Save as stated in paragraph 2 below it is not proposed to change the maximum acceptable limits for unvouched deductions under sub-section 51(1) published in the Schedule to Taxation Ruling No. IT 2165. The limits set out in the Schedule are to be applied in assessing returns of the relevant taxpayers for the year ending 30 June 1986.

2. Some limits specified in the Schedule equate with allowances paid under industrial awards. Where increases in those allowances have been awarded, the limits may be increased accordingly. At the time of releasing this ruling, some increases in award allowances for tools had been notified and are:

Airline Employees

Licensed Aircraft Maintenance Engineers and members of the Professional Radio and Electronics Institute where tools not provided by employer and award allowance received $405

Building Industry

Members of Building Workers' Industrial Union of Australia (where tools not provided by employer and National Building Trades Construction Award Allowance received)

(1.)

Artificial stoneworker, carpenter and/or joiner, carpenter-diver, carver, bridge and wharf carpenter, floor sander (Tas), letter cutter, marble and slate worker, stone mason, tilelayer (Vic). $584

(2.)

Caster, fixer, floorlayer specialist, plasterer $475

(3.)

Bricklayer, tilelayer (NSW) $410

(4.)

Rooftiler, slater - ridger or roof fixer $294

(5.)

Signwriter, painter, glazier (except Vic) $142

Engineers

Members of Australasian Society of Engineers, where tools not supplied by employer and award allowance received $405

Metal Tradesmen

(Other than in coal mining industry) Where tools not supplied by employer and award allowance received. (e.g. Members of A.M.F.S.U.) $405

3. Attention is drawn to the unvouched deduction allowed to members of the Australian Journalists' Association in respect of incidental expenses (page 6 of the Schedule). Among the items that fall for inclusion under this heading is expenditure on entertainment. Under sub-section 51AE(4) such expenditure incurred after 19 September 1985 does not qualify for deduction. The unvouched deduction for incidental expenses allowed to members of the Australian Journalists' Association includes entertainment expenses incurred before 20 September 1985.

4. It should be recognized that the practice of setting limits up to which claims for income tax deductions by certain employee taxpayers will be allowed without the need for verification will not apply after the year ending 30 June 1986. Deductions claimed for employment related expenses incurred from 1 July 1986 that exceed, in the aggregate, $300 per annum, may be allowed only where a taxpayer is able to produce, when called upon to do so, receipts, invoices or other documentary evidence that show the amounts and dates incurred and the nature of the expenses.

COMMISSIONER OF TAXATION
17 June 1986

References

ATO references:
NO 85/2890-0
BO PER J10/143; ADEL C51/1/1 Pt 17; HOB H3/5/8/1 Pt 1; MELB VJ 184/1; BRIS COR 873/18; CAN AC 51/2 Pt 7; NEW P/IT 51/G; PARR K-T51/1/1; SYD 27/B5

Related Rulings/Determinations:

IT 2048
IT 2088
IT 2165

Subject References:
ARBITRARY LIMITS
UNVOUCHED SECTION 51 DEDUCTIONS

Legislative References:
51(1)