Private ruling: Newspaper subscription expenses
Ruling period: Income year ended 30/06/2010
Date scheme commenced: 1 July 2009

Ruling: Q1: Are you entitled to a deduction for the website subscription expense? | A1: 

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You as trustee for a Superannuation Fund have subscribed to a newspaper's website. You have stated you obtained this subscription in order to monitor and control the investments of the superannuation fund. You are employed in your own capacity in an isolated location and you have stated this is often your only source of information. You have incurred expenses in respect of this subscription.

Relevant legislative provisions: Income Taxation Assessment Act 1997, section 8-1

Reasons for decision: Summary: Section 8-1 of the Income Taxation 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. A deduction is not allowable for the cost of newspapers and magazines, as they are considered a private expense. While a taxpayer may be able to use part of the information in the course of their work, the benefit gained is usually remote and the proportion of the expense that relates directly to work is incidental to the private expenditure: Case P30 82 ATC 139; 25 CTBR (NS) Case 94 and Case P114 82 ATC 586; 26 CTBR (NS) Case 47. You are not entitled to a deduction for the subscription costs in respect of the website as it is considered simply online access to a newspaper and is therefore private in nature.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. Contact us at the address given in the fact sheet if you have any concerns.