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

Ruling: Q1: Are you entitled to a deduction for expenses you incurred in relation to gaining an employment check as required by your on-going employment? | A1: Yes.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You are employed by a government department. You have been working for the department for at least 10 years. You incurred an expense for an employment check to maintain your employment. The employment check is mandated by a relevant authority. Your employer paid for your initial check. Each check lasts for 5 years.

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. Where the costs of employment checks are borne by the taxpayer and are incurred whilst deriving assessable income from within the same industry these expenses may be deductible. Class Ruling CR 2001/38 discusses the deductibility of blue cards obtained by Queensland workers employed in areas where they deal with children as part of their duties. The principles in this ruling are relevant in your case. CR 2001/38 provides at paragraphs 15 to 17 the following information: 15. Where the cost of the application is borne by the employee the expense is deductible in the following situations: where the employee is an existing employee of a school and is required to obtain a suitability notice in order to continue to derive assessable income in that position where a new employee of a school has recently derived assessable income from being continuously employed within the field of child-related employment. 16. Where a suitability notice is required to be renewed the cost of the renewal is deductible to the employee where the employee is currently employed in a permanent, temporary or casual position at a school and requires a suitability notice to be renewed to continue in that employment. 17. The cost of obtaining the initial suitability notice for a new employee who has not recently been continuously employed in the field of child-related employment is NOT deductible. Your circumstances are not considered to be materially different from the employees in the above class ruling. It was necessary as a continuing employee to obtain an employment check in order to continue in your duties. Therefore, these costs are deductible.

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.