14 (General Deductions)[1]

Cost of travelling between unrelated 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 
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Foundations of Taxation Law [¶14.7] © CCH Australia Limited 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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Foundations of Taxation Law [¶14.8](a) © CCH Australia Limited 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 )  
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Foundations of Taxation Law [¶14.8](b) © CCH Australia Limited Self-education expenses (cont) Self-education expenses (cont) Self-education expenses that relate to an occupation  in which the taxpayer is not currently engaged or that  relate to obtaining new employment are generally not  deductible ( Roberts ) An exception may apply where self-education  expenses are linked to other kinds of assessable  income (eg Youth Allowance) ( Anstis )
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Foundations of Taxation Law [¶14.9] © CCH Australia Limited Home office expenses Home office expenses A home does not ordinarily constitute business  premises and taxpayers are therefore not ordinarily  entitled to deductions for expenses such as rent paid  to lease their homes or interest paid on their home  loans even though they maintain a home office  ( Forsyth, Handley ) Expenses relating to maintenance of a home office  may, nevertheless, be deductible where the  taxpayer’s home is also a place of business  ( Swinford ) TR 93/30 distinguishes between: Occupancy expenses (eg rent, interest, rates)  Running expenses (eg heating, cooling, lighting)
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Foundations of Taxation Law [¶14.10] © CCH Australia Limited Rent and licence fees Rent and licence fees Deductions are generally allowed for the payment of  rent provided the only immediate advantage secured  from making the payment is the use of an income- producing asset over the term of the lease ( South  Australian Battery Makers ) Deductions are also generally allowed for licence 
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