Private ruling: Work related expenses
Date of advice: 2 December 2019
Published: February 2020
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to a deduction for the expenses you have queried that relate to maintaining a public profile as a local government councillor? | A1: 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.

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