Deductibility of prescription spectacles

Whether the taxpayer is entitled to a deduction under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) for the cost of purchasing prescribed spectacles, which are used at work to correct the taxpayer's vision impairment.

A deduction is not allowed under section 8-1 (ITAA 1997) for the cost of buying the spectacles as the expense relates to the taxpayer's personal medical condition and is private in nature.

The taxpayer has an eye disability that affects the taxpayer's ability to read information from a computer screen at work. The taxpayer consults an optometrist about the problem, and the optometrist prescribes a specific type of spectacles with single vision lenses to improve the taxpayer's range of vision. The glasses prescribed by the optometrist do not have protective qualities and are not anti-glare glasses. The taxpayer purchases the prescribed spectacles and uses them only at work.

A general deduction is allowed for outgoings incurred in gaining or producing assessable income, providing the outgoings are not of a private, capital or domestic nature, or incurred in earning exempt income: section 8-1 (ITAA 1997).

Paragraph 94 of Taxation Ruling TR 95/12, which discusses work-related deductions that are available to employee factory workers, states that a deduction is not allowable for the cost of prescription glasses or contact lenses, as the expense relates to a personal medical condition and is private in nature. However, a deduction will be allowed for the cost of protective clothing and equipment used at work, where the conditions of the work (rather than the natural environment) make it necessary for a taxpayer to provide protection to his or her person or clothing. Protective equipment includes safety helmets, earmuffs, facemasks, goggles, safety glasses and breathing masks. Anti-glare prescription glasses may also be protective equipment where the glasses are unsuitable for normal private use, have a distinct occupational character and they protect the wearer from personal injury in performing the duties of their employment: Taxation Ruling IT 2477 and Case U124 87 ATC 741; AAT Case 87 (1987) 18 ATR 3624.

In this case, the glasses do not have protective qualities. Although the taxpayer only uses the prescription spectacles when at work, the need for the glasses stems from the employee's personal medical condition. Accordingly, the cost of the prescription spectacles is a private expense and is not an allowable deduction under section 8-1 (ITAA 1997).