Martin, Lorraine Cheryl v Commissioner of Taxation of the Commonwealth of Australia [1984] FCA 197

neqiitey

CATCHWORDS.

Income Tax - Allowable deductions - Childminding expenses - Whether relevant or incidental to the work performed - "Perceived

connexion" - Whether such expenses a condition of employment.

Income Tax Assessment Act 1936, sub-s.51(1).

LORRAINE CHERYL MARTIN v THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

N.S.W. G393 of 1983

CORAM: Bowen C.J., Toohey and Lockhart J.J. 16 July 1984

Sydney

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY GENERAL DIVISION

No. G393 of 1983

ON APPEAL from the Supreme Court of New South Wales Administrative Law Division

BETWEEN:

LORRAINE CHERYL MARTIN Appellant

and

THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

Respondent

ORDER

JUDGES MAKING ORDER: Bowen C.J., Toohey and Lockhart J.J.

DATE OF ORDER: 16 July 1984 WHERE MADE: Sydney

THE COURT ORDERS THAT:

1. The appeal be dismissed. 2. Lorraine Cheryl Martin pay to the Commissioner of

Taxation of the Commonwealth of Austrailia his costs

of the appeal.

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY GENERAL DIVISION

No. G393 of 1983

~~ ew em

ON APPEAL from the Supreme Court of New South Wales Administrative Law Division

BETWEEN:

LORRAINE CHERYL MARTIN Appellant

and

THE COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

Respondent

CORAM: BOWEN C.J., TOOHEY & LOCKHART JJ.

te July 1984

REASONS FOR JUDGMENT

THE COURT

The issue before the Court is the entitlement of the taxpayer to a deduction from her assessable income of expenses incurred by her with kindergartens in caring for her child while she was at work. In the Supreme Court of New South Wales the taxpayer s claim to a deduction was rejected and she appeals

against that decision.

A number of such cases have come before Boards of Review in recent years and indeed the present taxpayer's claim was rejected by such a board before it came before the Supreme Court. The basis for the rejection of the present taxpayer's claim was the decision of Mason J. in Lodge v. Federal Commissioner of Taxation 11972) 128 CLR 171. Since Lodge played such a prominent part in the submissions of counsel for the taxpayer and the Commissioner before this Court, 1t is of some importance to appreciate the factual context in which the judgment of Mason J.