Draft Taxation Determination

TD 93/D19

Income tax: if a taxpayer claims a deduction for self education expenses under subsection 51(1) of the Income Tax Assessment Act 1936, is the first $250 spent, but disallowed as a deduction under section 82A, excluded from the substantiation provisions?

• Please note that the PDF version is the authorised version of this draft ruling.
  This document has been finalised by TD 93/97.

FOI status:

Preamble

1. Yes. The first $250 of self education expenses is not required to be substantiated by the taxpayer.

2. Under the substantiation provisions (section 82KZ), a taxpayer is only required to retain documentary evidence to substantiate work related expenses claimed as allowable deductions.

3. Even though the taxpayer is not required to substantiate the first $250 of self education expenses, the onus of proof still remains on the taxpayer to show (rather than substantiate) how the first $250 was expended.

Example:

A taxpayer spends $1500 in self education expenses. The first $250 is disallowed as a deduction under s82A. If the taxpayer claims $1250 as work related expenses , he/she must be able to substantiate $1250 with the necessary documentary evidence. Whilst there is no requirements to substantiate the first $250, the taxpayer must be able to provide a detailed explanation in regards to this expenditure.

Commissioner of Taxation
4 February 1993

References

BO UMG0042

Related Rulings/Determinations:

TR92/8

Subject References:
onus of proof
self education
substantiation

Legislative References:
ITAA 51(1)
82A
82KZ
190(b)