Deductions and expenses: Motorised Scooter

Whether expenses relating to a motorised scooter are allowable deductions.

The taxpayer is not entitled to a deduction in respect of the motorised scooter.

The taxpayer who is disabled, is employed as a tradesperson in a factory. The taxpayer and a rehabilitation service jointly purchased a motorised scooter which the taxpayer uses to move around the factory, as the taxpayer becomes fatigued when walking. The scooter is not used for carrying bulky tools and is only used in the factory. Without the scooter, the taxpayer cannot perform the duties of the position and therefore cannot earn the income.

The deductibility of medical appliances is considered in Taxation Ruling IT 2217 (Income tax deductions : medical appliances). Accordingly, whether a claim is made under subsection 51(1), subsection 53(1) or subsection 54(1) (Income Tax Assessment Act 1936 (ITAA 1936)) the test for income tax deductibility is essentially the same, that is, the need to use the particular appliance must be brought about by the duties of employment.

The sole purposes of the scooter may be for the taxpayer to overcome his personal disability in order to be able to earn assessable income. Although the taxpayer might be unable to earn his assessable income without the aid of the scooter, the outlay on the expenses was not incurred in gaining assessable income or carrying a business for that purpose, but rather was incurred to overcome the disability suffered by the taxpayer. (Case P31 82 ATC 141; Case 96 25 CTBR (NS) 715; Case Q17 83 ATC 62; Case 82 26 CTBR (NS) 556.)

There is nothing in the duties of employment to indicate any need for tradespersons to use a motorised scooter at work. More correctly, the expense is of a private or domestic nature which helped the taxpayer overcome a personal disability. To the extent that the taxpayer cannot work without the scooter, the expense can only be said to be a prerequisite to earning income.