Private ruling: Pay television expense
Published: July 2014
Ruling period: Year ended 30 June 2015 | Year ended 30 June 2016 | Year ended 30 June 2017 | Year ended 30 June 2018
Date scheme commenced: 1 July 2014

Ruling: Q1: Can you claim a deduction for expenses relating to pay television subscription at your home? | A1: No.

Relevant facts and circumstances: You are currently employed by a firm who subscribes to a pay television service in the workplace. You also have the service at your home.

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, or relate to the earning of exempt income. For a deduction to be allowed under section 8-1 of the ITAA 1997, the expenditure must be incidental and relevant in the sense of having the essential character of expenditure incurred in the course of gaining or producing assessable income. There must be a sufficient connection between the expense and the operations or activities which gain or produce the assessable income (refer to Federal Commissioner of Taxation v. Cooper (1991) 29 FCR 177; 91 ATC 4396; (1991) 21 ATR 1616). Taxation Ruling TR 98/14 discusses whether a deduction is allowable for pay television expenses by journalists. Paragraph 138 of this Ruling explains that a deduction is not generally allowable under section 8-1 of the ITAA 1997 for the cost of access to pay television as it is not incurred in producing assessable income and is a private expense. The ruling further states that even though a taxpayer may be able to use part of the information obtained in the course of their work, the benefit gained is usually remote and the proportion of the expense that relates to work is incidental to the private expenditure. In your case, it is considered that there is an insufficient connection between your income earning activity and the pay television expenses incurred for the service at your home. Although you may be able to use some of the information obtained from the package with your employment, the benefit gained is regarded as being too remote and too general in the gaining of your assessable income. Accordingly the pay television expenses are considered private in nature and are not deductible under section 8-1 of the ITAA 1997.