Private ruling: Business Deductions - Protective Items
Date of advice: 25 October 2016
Published: February 2017
Ruling period: Year ended 30 June 20YY | Year ended 30 June 20YY | Year ending 30 June 20YY
Date scheme commenced: 1 Jul 20YY

Ruling: Q1: Can I claim ice and bottled water as a business deduction? | A1: Yes

Relevant facts and circumstances: You are a contracting business. Your employees work away from the place of employment at various job sites. Your state code of practice requires access to drinking water. You supply your employees with bottled water and ice on a daily basis.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 8-1 | Income Tax Assessment Act 1997 Section 8-1(2)

Reasons for decision: Summary: Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) allows a deduction for any losses and outgoings to the extent to which they are incurred in carrying on a business for the purpose of 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 or a provision of the taxation legislation excludes it. In your case it is a requirement of you as an employer, under work-related safety codes of practice, to provide protective items. For remote or temporary workplaces, the requirement can be access to public drinking water facilities, bottle water or containers. You state that you are supplying your employees with the following protective items; bottled water and ice. You are entitled to claim a deduction under Section 8-1 of the ITAA 1997 for the bottled water and ice as a business expense.