Private ruling: Work related expenses
Published: November 2012
Ruling period: Year ended 30 June 2012
Date scheme commenced: 1 July 2011

Ruling: Q1: Are you entitled to a deduction for the cost of hiring a shed? | 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. Expenses are considered to have been incurred in gaining or producing assessable income where they are related to the production of assessable income. In your case, the cost of storing work related equipment is considered to be directly related to producing your assessable income. Therefore, you are entitled to a deduction for the cost of hiring a shed.

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 are required to use your own tools for your job. | You have your tools in a trailer. | You do not have secure storage at your home to store the equipment. | You have hired a shed in which you lock up your equipment and store other work related equipment. | You do not store any private items in the shed.