Private ruling: Work related expenses
Date of advice: 3 October 2018
Published: November 2018
Ruling period: 30 June 2018 to 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Can you claim a deduction for your usage of your dog you take to work? | A1: No

Relevant facts and circumstances: You are currently employed as a security guard. The current site you attend is a school. The site has extensive grounds and is contracted for canine security after hours. At current, you do not have your dog handling certificate and you are employed as a static guard. You intend to complete the required course to obtain specific dog handling qualifications. You have not acquired a security dog, due to the associated costs. Your operations manager has requested you bring your dog (pet) from home on weekend shifts. This is outlined in a letter from your employer that you bring your dog to provide canine presence on the weekend shifts you work. Throughout the week this canine job is undertaken by the employer’s personal canine. The entire site in under CCTV surveillance and your dog is highly visible during the required foot patrols. If you were unable to take you dog to work this would reduce your hours and your employer would have to complete these shifts with his canine. The canine presence is easy visible form the busy intersection and deters the public cutting through the property. Your dog is not a trained security dog.

Relevant legislative provisions: Income 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 outgoing 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. In order for an expense to be deductible under section 8-1 of ITAA 1997 there must be a nexus between the expense and the assessable income. The expense must be relevant to the gaining of assessable income and the expenditure must not be capital, private or domestic in nature. A dog is inherently considered a pet so generally, expenses incurred in maintaining a dog are a private or domestic nature and therefore is not deductible under section 8-1 of ITAA 1997. In some instances a dog is considered a working beast or item of plant for a business, for example: ● a guard dog which used to provide security for business premises as it is serving a productive function of the business, ● a working dog is used to muster stock is also serving a productive function or ● a police dog which is used to search, protect and detain serves a productive function. A working beast (item of plant for a business) such as a guard, working or police dog remain on the business premises and do not socialise with owners. These dogs are relevant to the operation of the business and maintenance expenses would generally be deductible under section 8-1 of ITAA 1997. However, in your situation your dog is primarily a pet, which resides at your home, where you care for and socialise with your dog. Your dog was intended to be a pet and is also not trained as a security dog. After your shift your dog returns home with you. | Detailed Reasoning - Conclusion: In these circumstances, it is considered that the cost of maintaining your dog is not a work related expense and therefore the training, maintenance and care of the dog is not deductible under section 8-1 ITAA 1997 as it is considered to be a private or domestic expense.