Private ruling: Footwear
Published: August 2012
Ruling period: Year ended 30 June 2012 | Year ending 30 June 2013 | Year ending 30 June 2014 | Year ending 30 June 2015
Date scheme commenced: 1 July 2011

Ruling: Q1: Are you entitled to a deduction for footwear? | A1: No.

Relevant facts and circumstances: You are employed in the hospitality industry. You purchased footwear. You purchased the footwear from a supplier that specialises in the sale of clothing and equipment to chefs, cooks and other kitchen staff. The footwear is of a conventional design but is marketed to persons working in the food service, hospitality and healthcare industries.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 8-1

Reasons for decision: Summary: Under subsection 8-1 of the Income Tax Assessment Act 1997 , an employee is entitled to a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income, and are not considered to be of a capital, private or domestic nature. Footwear will be considered to be protective where there is a direct nexus between the income producing activities of a person and the expenditure. The footwear must be specifically designed to protect the wearer from injury. The footwear that you purchased is not considered to be occupation specific to the hospitality industry although they are marketed as such. They are considered to be conventional footwear, as they do not have a limited or specific use. Taxation Ruling TR 95/11 considers the deductions that may be available as a result of expenditure incurred by employees working in the hospitality industry. TR 95/11 states in paragraph 55 the following in relation to conventional footwear: A deduction is not allowable for the cost of conventional footwear such as running shoes, sports shoes and casual shoes, as it is not considered to be protective. We consider that the cost of this footwear is a private expense and is not an allowable deduction. A deduction is allowable for expenditure on protective footwear such as steel-capped boots. Your footwear is not considered to be protective to the same extent as footwear such as steel capped boots. The purchase of the footwear is therefore considered to be a private expense and an income tax deduction is not allowable.

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