Income tax: is a police officer entitled to a deduction for the cost of renewing a driver's licence?

No. While the holding of a driver's licence may be a condition of employment, it does not follow that the licence fees are deductible. They are private in nature and accordingly not deductible under subsection 51(1) of the Income Tax Assessment Act 1936.

The right to drive on the public roads does not cease to be a private right merely because the taxpayer is employed in some capacity which involves the use of the public road system.