Private ruling: Deductions
Date of advice: 1 July 2016
Published: August 2016
Ruling period: Year ending 30 June 2016 | Year ending 30 June 2017 | Year ending 30 June 2018 | Year ending 30 June 2019 | Year ending 30 June 2020
Date scheme commenced: 1 July 2015

Ruling: Question and answer | Are you entitled to a deduction for the costs associated with employing someone to carry out duties as a driver and security? | No.

Relevant facts and circumstances: You are a professional. Your work requires you to do call outs at night. You have concerns for your safety. You want to employ someone to drive you to the location and wait for you to complete your call out and then will drive you home. You will pay the person a wage for the driving and security services which will be in line with industry standards. You are not able to perform your duties as a professional if you do not have a driver and security.

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

Reasons for decision: Summary: According to section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997), you can deduct a loss or outgoing if it is incurred in producing your assessable income except where the outgoing is of a capital, private or domestic nature. A driver and security is not required for you to perform your duties as a professional and without these services you are able to still work as a professional. The provision of a driver to drive you to your nightly call-outs and to provide security while at these call-outs is private in nature and is not an eligible deduction under section 8-1 of the ITAA 1997.