Private ruling: Expenditure on prescription glasses
Published: August 2012
Ruling period: Year ended 30 June 2012
Date scheme commenced: 1 July 2011

Ruling: Q1: Are you entitled to a deduction for the expense incurred for prescription glasses? | A1: No.

Relevant facts and circumstances: You require glasses at work for reading and working on the computer. You had your eyes tested and the optician informed you that you needed new glasses for reading and computer work. You incurred out of pocket expenses in acquiring two pairs of glasses, one pair for computer use and the other for reading. You use the reading glasses outside of the work place as well as at work. The computer glasses are used solely at work.

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

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. Paragraph 114 of Taxation Ruling TR 95/14 states that a deduction is not allowable for the cost of prescription glasses or contact lenses, as the expense relates to a personal medical condition and is private in nature. In your case, you have purchased prescription glasses for reading and computer work. Although you use one pair of the prescription glasses solely whilst working on the computer, the need for both pairs of glasses stems from your personal medical condition. Accordingly, the cost of the prescription glasses is a private expense and is not an allowable deduction under section 8-1 of the ITAA 1997.

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