Private ruling: Prescription glasses
Published: October 2012
Ruling period: Year ending 30 June 2013
Date scheme commenced: 1 July 2012

Ruling: Q1: Are you entitled to a deduction for a portion of the cost of your prescription glasses attributable to earning your assessable income? | A1: Yes


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 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. Paragraphs 35 and 36 of Taxation Ruling TR 2003/16, which discusses the deductibility of protective items, states that expenditure on items you use to protect yourself against the risk of illness or injury is private or domestic in nature if it is incurred merely as part of your normal personal requirements. For instance, you cannot claim a deduction for the cost of prescription glasses to protect yourself against the risk of injury where the risk arises only because of your short-sightedness. However, expenditure on prescription sunglasses, including photochromic glasses which have filtering and glare reducing qualities similar to sunglasses which protect you from the risk of illness or injury at work is not of a private or domestic nature. In your case you have purchased a pair of photochromic prescription glasses. It is reasonable to expect that as you work solely outdoors, that the duties of your job require you to be exposed to the sun and protection from glare and the sun's rays is required. Therefore, the cost of your prescription glasses is an allowable deduction. However, you must apportion the expenditure on protective items which you also use partly for private or domestic purposes. Therefore, you can only claim a deduction for the portion of the expenditure attributable to earning your assessable income.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet. | Relevant facts: You work in a certain field. | You require glasses to be able to complete your job and as you work solely outdoors you are exposed to the sun, rain and winds. | You have recently purchased a pair of photochromic multifocal prescription glasses.