Deduction for cost of purchasing sunscreen

Is a taxpayer entitled to a deduction for the expenses incurred in purchasing sunscreen under section 8-1 of the Income Tax Assessment Act 1997 ('ITAA 1997') where they are required to work outdoors for extended periods?

Yes. A taxpayer is entitled to a deduction under section 8-1 of the ITAA 1997 for the expenses incurred in purchasing sunscreen, to the extent that it is not used for private purposes, as the expenditure has been incurred in gaining or producing their assessable income.

In order to earn their income the taxpayer is required to be outdoors and exposed to the sun for extended periods.

To protect themselves from the sun they wear sunscreen.

They purchased the sunscreen themselves.

Section 8-1 of the ITAA 1997 allows a deduction for all losses or outgoings to the extent to which they are incurred in gaining or producing assessable income, except to the extent that they are outgoings of a capital, private or domestic nature.

Following the decision in Morris and Ors v. Federal Commissioner of Taxation [2002] FCA 616; (2002) 50 ATR 104; 2002 ATC 4404; it is accepted that sunscreen worn while working protects the taxpayer from the risk of illness or injury from exposure to the sun therefore enabling the taxpayer to earn their assessable income. Therefore there is a clear connection between the expenditure incurred and the earning of the assessable income.

Apportionment of the expense will be necessary if the items are used partly for private purposes.

The taxpayer is entitled to a deduction under section 8-1 of the ITAA 1997 for the cost of purchasing sunscreen as it was incurred in gaining or producing assessable income.