Private ruling: Rental of post office box
Published: April 2013
Ruling period: Year ending 30 June 2013 Year ending 30 June 2014 Year ending 30 June 2015 Year ending 30 June 2016 Year ending 30 June 2017 Year ending 30 June 2018
Date scheme commenced: 1 July 2012

Ruling: Q1: Are you entitled to a deduction for the cost of renting a post office box? | A1: No.

Relevant facts and circumstances: You and your spouse have rented a post office box. The post office box is used only for income related mail. You rented the post office box for security reasons. Personal mail is sent to your home address.

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 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 or a provision of the taxation legislation excludes it. Taxation Determination TD 93/115 examines the deductibility of whether the cost of maintaining a 'silent' telephone number is an allowable deduction. TD 93/115 states that expenditure relating to a decision to preserve anonymity and privacy is private in nature and, therefore, not deductible. Whilst you have requested a ruling on the deductibility of a post office box, and not a silent telephone number, the principle contained in TD 93/115 can be applied to your situation. You have rented a post office box for security purposes. The rental of the post office box has not been incurred in earning your assessable income. You will earn that income regardless of whether you have a post office box for mail or not. The fact that only income related mail is sent to the post office box does not change its character from being a private expense to an income earning related expense. No deduction is allowable for the cost of renting a post office box.