Private ruling: Work related travel and other expenses
Published: August 2013
Ruling period: Year ended 30 June 2013
Date scheme commenced: 1 July 2012

Ruling: Q1: Are you entitled to a deduction for the cost of a gazebo? | A1: No. | Q2: Are you entitled to a deduction for the cost of a pop-up toilet tent? | A2: No. | Q3: Are you entitled to a deduction for the cost of a mobile phone battery expander, to the extent that is used for work purposes? | A3: Yes.

Relevant facts and circumstances: You are employed, working at locations within 150km from a capital city. The locations can be remote. You work shifts of up to 20 hours with no chance for relief to use public rest room facilities. You are not permitted to sit in your work vehicle while working. You transport a large gazebo and a pop-up toilet tent to and from work. You use the gazebo as cover while you are on work duty. You use the pop-up toilet tent to relieve yourself while on duty. As you work for prolong periods at locations that may have no electricity, and you need to be contactable, you purchased a mobile phone battery expander.

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 (ITAA 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. Gazebo Taxation Ruling TR 2003/16 provides guidelines on the deductibility of protective items used for protection against injury. It states that although a protective item may be of a kind normally associated with private or domestic use, the nature of the use of that item will in some instances give expenditure on it the essential character of an outgoing incurred in gaining assessable income. However this is a question of fact which depends on the degree to which your work place poses a risk of illness or injury, and the degree to which the item protects you against that risk. The ruling lists a number of indicators of the degree of risk and of protection against that risk referred to above. However the indicators that are relevant to the item in question is: · where you are required to work in an environment which could be harmful if adequate safety precautions are not taken; For example - where you work in extreme weather conditions · whether the protective item is of a kind that provides protection from that risk and would reasonably be expected to be used in the circumstances. Although it is acknowledged that you are exposed to the elements for a considerable period of time during your shifts, we do not consider that your work environment exposes you to 'extreme weather conditions that would pose a risk of illness or injury. The use of the gazebo is considered a personal choice for comfort, rather than for the prevention of illness or injury and is outside the scope of what would be considered reasonable in circumstances similar to yours. Consequently it is private in nature and is not deductible. Pop-up toilet tent A Pop-up toilet tent is private in nature, is not considered to be incurred in gaining or producing assessable income and is therefore not deductible. Mobile phone battery expander A deduction is allowable for the cost of a mobile phone battery expander to the extent of the work related use of the item. Where the item is not used for work related purposes, the expense must be apportioned to exclude any private use. Travel expenses - bulky equipment As the gazebo and pop-up toilet tent are considered private or domestic in nature, you are not entitled to a deduction for their transportation to and from your work sites.