14 (General Deductions)[1]

Structure is usually capital in nature expenditure

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structure” is usually capital in nature;  expenditure   that relates to “the process  of operating it” is usually revenue in  nature ( Sun Newspapers ) Other negative limbs Other negative limbs § Second limb:  Losses or outgoings of a  “private or domestic nature” § Third limb:  Losses or outgoings  incurred in gaining exempt income or  non-assessable non-exempt income § Fourth limb:  Losses or outgoings that  are specifically not deductible under 
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another provision Clothing expenses Clothing expenses § “… generally expenditure on ordinary  articles of apparel will not be deductible,  notwithstanding that such expenditure is  necessary to ensure a suitable  appearance in a particular job or  profession. An employed solicitor may  be required to dress in an appropriate  way by his or her employer, but that fact  alone would not bring about the result  that the expenditure was deductible.”  ( Mansfield ) § Cost of clothing may be deductible in  special cases: § Frequent changes of clothing  ( Edwards ) § Lager shoes ( Mansfield ) § Sun protection items ( Morris
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Travel expenses Travel expenses § Cost of travel on (ie “in the course of”)  work is generally deductible ( Taylor ) § Cost of travel to find new employment is  ordinarily not deductible as it comes  “too soon” to income-earning activities  ( Maddalena ) § Cost of travelling between home and  work ordinarily not deductible ( Lunney  & Hayley ).  § Exceptions apply to taxpayers who are: § Itinerant workers ( Wiener ) § On stand-by duties ( Collings ) § Involved in transporting bulky goods  ( Vogt Travel between unrelated Travel between unrelated     places of work places of work
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§ Cost of travelling between unrelated  places of work is ordinarily not  deductible under s 8-1 ITAA97 ( Payne ) § However, s 25-100 ITAA97 provides  that the cost of travelling between two  unrelated places of work may be  deductible where: § Taxpayer travels directly between  those places § Neither place is the taxpayer’s home  Child-minding expenses Child-minding expenses § Cost of having children minded so that  taxpayers can engage in work is usually  characterised as a private or domestic  outgoing and therefore not deductible  ( Lodge Martin Hyde Jayatilake
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Self-education expenses Self-education expenses § Cost of self-education expenses  generally deductible provided the  outgoings relate to occupation in which  taxpayer is currently engaged ( Finn Hatchett Highfield ) § It is not necessary to show that the  expenditure will result in extra income  for the taxpayer – it is sufficient if the  expenditure is incurred with the object  of improving the taxpayer’s “proficiency”  in their occupation ( Studdert )   Self-education expenses Self-education expenses     (cont) (cont) §
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