Private ruling: Work-related expenses
Date of advice: 12 January 2026
Published: 9 March 2026
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to claim a deduction for the ongoing expenses related to the maintenance, training and care of your therapy horse apportioned for the 1 day a week you bring the horse into the school under section 8-1 of the ITAA 1997? | A1: Yes. | Q2: Are you entitled to transport expenses you have incurred when bringing the horse to and from the school under section 8-1 of the ITAA 1997? | A2: Yes.

Relevant facts and circumstances: You commenced the position of XXX XXX as of DDMMYYYY with your employer. You provided a letter dated DDMMYYYY signed by XXX XXX, Chief Operating Officer at Employer A confirming that you use your privately owned horse to assist in your duties and are not reimbursed. The responsibilities for the position of a XXX at Employer A states that equine assisted therapy is undertaken where training permits. You advised that the horse is not used for any other income producing activities. Expenses incurred are as follows: • for the transport of the horse (float), vehicle fuel/maintenance, registration and insurance), • horse care and maintenance including feed, veterinary bills, farrier and equipment • agistment and training costs to the extent the horse is kept fit and suitable for therapeutic work You provided a copy of your certificate confirming that you are an XXX XXX XXX XXX obtained from The XXX XXX XXX in DDMMMYYYY. You advised that your private horse has been broken in to saddle children, has had training in leading, floating, trimming, grooming and traffic. It has had training in exposure to loud noises, being around children. You advised that you are a qualified pony club instructor and coach children regularly in horsemanship and training their horses. You advised that currently you work a XX-week year at X days per week from Xam to Xpm during the working year. Currently the horse attends for one day per week and this could potentially increase in the future. You provided a schedule indicative of when the horse attends work. Therapy sessions commence at approximately X.XXam and end approximately X.XXpm. You provided photos of the float that transports the horse to and from the place of stabling at Property A and Property B. You provided photos of the enclosure that the horse is kept in while at your place of work. You provided a copy of the insurance policy issued by Company A to Employer A covering the business of Equine Assisted Learning and Therapy dated DDMMYYYY to DDMMYYYY. You provided copy of the Program A that is run as part of your employment duties with Employer A.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 8-1 | Income Tax Assessment Act 1997 section 40

Reasons for decision: Summary: 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, private or domestic nature, or relate to the earning of exempt income. | Detailed Reasoning - All other expenses relating to the horse: General pet insurance is a private cost. It is the same insurance any pet owner would incur to insure their pet. In these circumstances, it is considered that the pet insurance cost is not a work-related expense and therefore is not deductible under section 8-1 of the ITAA 1997. It is considered a private or domestic expense. The insurance expense for the float is deductible for the portion of time it is being used to perform your activities during the equine assisted therapy (therapy) sessions undertaken at this time one day a week. All other expenses directly related to the horse and the activities related to the therapy sessions are deductible as it is being used for the purpose of producing your assessable income. Therefore, under section 8-1 of the ITAA 1997, you are able to partially deduct expenses for feed, veterinary and other related expenses between the use as a therapy horse at school to private as a pet. This can be calculated by taking into account the number of hours, days per week and weeks per year for which the horse is actively engaged while working during the therapy sessions at school, versus the balance of the time when it is not being used for therapy sessions at school. Time spent privately (not working) and times not being used by you for your work activities would not count towards a taxable use component. You will need to maintain records, including a diary or logbook, to enable you to calculate the appropriate apportionment for the deduction. | Detailed Reasoning - Horse float - depreciation: The cost of the float purchase is assessed under Section 40-25 of the ITAA 1997 which allows a deduction for the decline in value of depreciating assets. The decline in value of a depreciating asset is worked out by reference to the cost of the asset and its effective life. You can deduct the cost as a decline in value deduction to the extent the horse float is used to assist with your activities in respect of sessions held for therapy. The deductible proportion can be calculated by taking into account the number of hours for which the horse float is actively engaged as a mechanism for providing therapy at school by you, versus the balance of the time during the week when it is not being used by you to assist with the therapy activities. Time spent at home in a private setting (not working) and times not being used by you for your work activities would not count towards a taxable use component. You will need to maintain records, including a diary or logbook, to enable you to calculate the appropriate apportionment for the deduction. Income Tax Assessment Act 1997 LI 2025/20 is the Income Tax Assessment (Effective Life of Depreciating Assets) Determination 2025, which stipulates that the effective life of a horse float is 20 years. As the horse float will begin to decline in value from the time you start to own it, the decline in value for the horse float must be calculated accordingly from that time over its effective life. | Detailed Reasoning - Travel expenses: A deduction is generally not allowable for the cost of transport by an employee between home and his normal workplace as it is generally considered to be a private expense. The cost of travelling between home and work is generally incurred to put the employee in a position to perform duties of employment, rather than in performance of those duties. As stated in Taxation Ruling 2021/1 Income tax: when are deductions allowed for employee's transport expenses paragraphs 79 and 80: 79. Where the nature of the employment creates a practical necessity, explained by work duties, to transport bulky equipment to and from a regular place of work (including to and from home to a regular place of work), the expense of transporting that bulking equipment to and from that regular place of work may be deductible. It is construed by the Commissioner as a narrow exception to the ordinary principle that travel from home to a regular place of work is private and thus not deductible. 80. To come within this exception, it is necessary that: • the equipment is essential for the performance of the employee's employment duties • the equipment is bulky such that transportation by car or other private vehicle is the only realistic option, and • transporting the items to and from their regular place of work is a practical necessity because there is no secure area for storage of the equipment provided by the employee's regular place of work or the equipment needs to be transported to a different site each day. The question of what constitutes 'bulky' equipment must be considered according to the individual circumstances in each case. In FC of T v. Vogt 75 ATC 4073, 5 ATR 274 ( Vogt's Case ), the taxpayer was a professional musician who used his vehicle to transport bulky musical instruments and associated equipment from his home to his places of employment. It was found in Vogt's Case that the taxpayer was entitled to a deduction for home to work travel expenses as he was using his vehicle for work related purposes to transport bulky equipment. In Crestani v. FC of T 98 ATC 2219; (1998) 40 ATR 1037 (Crestani's Case) , Senior Member J Block was of the opinion that the term 'bulky' should not be construed to refer only to an article of large size, such as the musical instrument subject to the decision in the Vogt's Case , but more aptly construed as similar to 'cumbersome' in the sense that it is not portable. In Crestani's Case , the tribunal was of the opinion a toolbox was 'bulky'; it was not easy to lift and could not be carried for any distance. The toolbox measured 57 cm x 28 cm x 25 cm (that is, having a volume of about 0.04 cubic metres) and weighed 27 kg. The toolbox was considered as 'bulky', in the sense of 'cumbersome', and the transport cost was 'attributable' to the transportation of such bulky equipment rather than private travel between home and work. The employer did not provide a secure storage area for the toolbox, and the use of public transport was not a viable option. In your case, based on the facts provided, it is accepted that the equipment being the horse you use in the performance of your duties is bulky and not easily portable. Accordingly, a deduction will be allowable for the motor vehicle costs attributed to the transportation of the bulky equipment between the place of agistment and your place of work for the current one day per week under section 8-1 of the ITAA 1997. | Detailed Reasoning - Application to your circumstances: Based on the facts provided it is confirmed that the use of your private horse to complete your employment activities has been established. Currently the horse is used one day per week and therefore the expenses for transport and maintenance, training and care are to be apportioned by calculating the number of hours each day and days per year that the horse is being directly relied on to complete your employment duties.