Are you entitled to claim a deduction for all, or a portion, of the expenses related to maintaining your therapy dog under section 8-1 of the Income Tax Assessment Act (ITAA 1997)?
No. This ruling applies for the following periods: Year ending 30 June 20XX Year ending 30 June 20XX The scheme commenced on: XX XX 20XX
You are employed by XX primary school. You have a therapy dog called XX. XX is a fully certified therapy dog. You are a certified handler and XX is under your supervision. You incurred all expenses relating to the therapy dog program. The dog attends school with you approximately 3 days a week. Outside of school hours, the dog resides with the you at your home. XX primary school does not pay for XX to attend school or for XX services. Your employer does not contribute financially to any of the expenses relating to your dog. XX roles and responsibilities include: • Emotional support • Social and behavioural improvement • Academic Enhancement • Reducing absenteeism • Crisis Intervention To date you have incurred certain costs associated to XX, these include the following; • Purchase of dog • Consult • Assessment cost • Clinical therapy dog course and training certification • Temperament assessment • Equipment and supplies • Food and nutrition expenses • Veterinary care • Pet insurance • Medication and supplements.
You have not provided your employment contract as it was unavailable to you. You have not provided your duty statement. You have stated it is not a requirement of your employment to have a therapy dog.
Income Tax Assessment Act 1997 section 8-1 Summary The cost incurred for the purchase of a therapy dog and costs associated to maintaining the dog and its qualifications as a therapy dog cannot be claimed as a deduction under Section 8-1 of the ITAA1997. This is because expenses incurred for the purchasing, training and maintaining of a therapy dog are not incurred in earning your assessable income. Detailed reasoning Section 8-1 of the ITAA 1997 allows a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income, except where the outgoings are of a capital, private or domestic nature, or relate to the earning of exempt income. To be deductible under section 8-1 of the ITAA 1997, expenditure must have the essential character of