Private ruling: Work related expenses
Date of advice: 25 September 2018
Published: November 2018
Ruling period: Income year ended 30 June 20xx
Date scheme commenced: 1 July 20xx

Ruling: Q1: Are you entitled to claim a deduction for the cost incurred for the assessment? | A1: Yes. As the assessment was conducted while you were employed, the expense is not an outgoing that precedes the earning of assessable income. It is an expense incurred in the course of gaining assessable income. Also, the expense is not capital or private in nature. The expense is therefore deductible.

Relevant facts and circumstances: You are employed by a company as the driver of a heavy passenger vehicle. After having worked for the company for a period you became seriously ill and you were off work for several months. During this period your employment with the company was not terminated. When you returned to work, the company required a fitness for duties assessment to be done. This was arranged by your employer with a medical practice. At that time, you were told by your employer that the company would not pay for the assessment. You agreed to cover the cost in order to be able to return to work and continue earning an income. Your examination was performed by the medical practice. You have provided a copy of the assessment report from them. It states that you are fit to continue driving a heavy passenger vehicle. You have also provided a copy of the receipt from the medical practice which shows you paid them $X for the assessment.

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