Private ruling: Business deductions - therapy dog services
Date of advice: 10 December 2025
Published: 27 January 2026
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to a deduction for the initial training course to certify your dog as a therapy dog under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. You are entitled to a deduction for the initial training course as the course is necessary for your dog to obtain certification. This certification is required for using the dog in your income-producing activities. | Q2: Are you entitled to a deduction for expenses incurred to maintain therapy dog registration under section 8-1 of the ITAA 1997? | A2: Yes. Expenses such as ongoing dog training and biannual veterinary check-ups as required by therapy dog registration are incurred to maintain your dog's eligibility as a therapy dog, which is necessary for you to use your dog in your income-producing activities. | Q3: Are you entitled to a deduction for expenses incurred directly related to your dog providing therapy services under section 8-1 of the ITAA 1997? | A3: Yes, as these expenses are necessarily incurred in carrying out your income-producing activities. | Q4: Are you entitled to a deduction for dog food, general dog gear, pet insurance, and general veterinary expenses for your therapy dog under section 8-1 of the ITAA 1997? | A4: Yes. A portion of the expenses incurred to maintain your dog's life and wellbeing are deductible to the extent they relate to its business use as a therapy dog. | Q5: Are you entitled to a deduction for a dog crate installed in your vehicle to safely transport your therapy dog under section 40-25 of the ITAA 1997? | A5: Yes. The dog crate installed in your vehicle is considered a depreciating asset under section 40-30 of the ITAA 1997, with a limited effective life. You can claim deductions for its decline in value under section 40-25 of the ITAA 1997. This amount must be reduced for any private use.

Relevant facts and circumstances: You hold a degree and a graduate diploma relevant to your employment and business activities. During the ruling year, you worked part-time as an allied health assistant. In the relevant year, you acquired an 8-week old puppy. After the acquisition, the puppy undertook and completed training in various classes. You decided to begin therapy dog activities. Your dog began the therapy dog training course and was certified as a therapy dog. Your dog works a maximum of 3 days per week and also lives with you as a pet. In the same month after certification, your dog commenced trial shifts. The trial was initiated to support an application for a government grant, which was later approved. Under this approval, you and your dog will jointly provide group-based animal therapy sessions for a specified period. The agreement was entered into and commenced during the ruling year. Visits are conducted twice a week and charged at an hourly rate. You received weekly income generated from the sessions with your dog under the agreement. You also derived income from your dog's involvement in disability support services. You incurred a number of expenses including: • Initial dog training course for certification purposes • Expenses incurred for maintaining your dog's registration, such as ongoing dog training and veterinary check-ups every 6 months as required by therapy dog registration • Expenses directly related to your dog providing therapy services, such as a work crate used in every shift, a leash and harness, therapy resources and supplies (e.g., dental chews for work and business cards) • A car crate made of industrial plastic (including tie downs) installed in your vehicle to safely transport your dog. The crate has a limited effective life. • Dog food • General dog gear such as a flexi lead and dog clothing • Pet insurance • General veterinary expenses You maintain comprehensive records, including tax invoices for all related expenses, receipts and other financial documentation, detailed client session logs and scheduling records, and professional development and training certificates. You will appropriately apportion any expenses that also have a private or personal component.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 8-1 | Income Tax Assessment Act 1997 section 40-25 | Income Tax Assessment Act 1997 section 40-30