Issue
Whether expenditure by the television presenter on clothing and personal care products is allowable as a deduction under section 51(1) (Income Tax Assessment Act 1936) against assessable income.
Decision
Expenditure by the television presenter on clothing and personal care products is not allowable as a deduction under section 51(1) (Income Tax Assessment Act 1936) against assessable income.
Facts
The taxpayer is a television presenter. As a television presenter, the taxpayer is expected to be presented impeccably and consequently incurs expense in relation to conventional clothing, dry cleaning, hair colouring and cuts, facials and make-up products far in excess of normal requirements.
Reasons For Decision
For expenditure by an employee to be deductible, the expenditure must have the essential character of an outgoing incurred in gaining assessable income. It is not sufficient that the expenditure is a prerequisite to the derivation of assessable income. It must contribute to the derivation of that income.
The clothing purchased by the taxpayer is not part of a uniform nor of a special nature to be worn in unusual circumstances (cf FC of T v Edwards 1994 ATC 4255; (1994) 28 ATR 87). Expense incurred by the taxpayer in relation to clothing is incurred in order for the taxpayer to be able to commence her work duties and is private in nature. Similarly, the expenditure on hairdressing, cosmetics and other personal grooming products purchased by the taxpayer is of a private nature regardless of the amount of expenditure involved.