Private ruling: Work related expenses
Date of advice: 22 February 2023
Published: 11 April 2023
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to a deduction for your expenses of publishing, printing and freight? | A1: Yes. Based on the information provided to the Commissioner, the publishing expenses you incurred to publish, print and distribute a book have the relevant connection with your current income earning activities. A portion of the total expense of $XXXX which represents the publishing, printing and freight expenses can be claimed as a deduction under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997). | Q2: Are you entitled to a deduction for marketing expenses? | A2: No. Based on the information provided to the Commissioner, the portion of the total expense of $XXXX representing the marketing expenses associated with the book is not an allowable deduction under section 8-1 of the ITAA 1997 as the marketing expenses do not have the relevant connection to your income activities. The expenses of marketing the book do not have sufficient connection with the production of assessable income in your employment position to be deductible.

Relevant facts and circumstances: You are employed. In the year ended 30 June 20XX, you incurred book publishing expenses of $XXXX which you want to claim as work related expenses. You have provided us with a payment summary in the total amount of $XXXXX for the publishing expenses you paid. You asserted that there's an expectation that you will publish as part of the conditions of your employment. You applied for a promotion and got the promotion. You confirmed that you're able to provide evidence to substantiate your claim when you lodge your tax return that the publishing expenses were funded from • Personal funds • Family members credit card, and • Personal loan. You confirmed that you're paying the publishing expenses in monthly instalments; and that you didn't receive any reimbursements for the publishing expenses you paid. You provided a copy of the Services and Distribution Agreement for the publication and distribution services of your work. You have advised that approximately 90% of the total paid was for a marketing package. The balance of the payment was for publishing, printing and freight expenses.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 8-1