Lodge v Commissioner of Taxation (Cth) [1972] HCA 49

High Court of Australia Mason J. Lodge v Commissioner of Taxation (Cth) [1972] HCA 49

ORDER Appeal dismissed. Assessment confirmed. Usual order for exhibits.

Cur. adv. vult.

Mason J delivered the following written judgment:—

Oct. 16 Mason J

In her income tax return for the year ended 30th June 1971 Ann Margaret Lodge disclosed a gross income of $3,521 of which the sum of $2,937 was earned by way of commission in her occupation as a law costs clerk. Included in the deductions which she claimed was an amount of $647 expended in nursery fees for the care of her infant daughter Deborah who was born on 26th October 1968. Miss Lodge's taxable income as returned was $2,171. Her claim for a deduction of $647 was disallowed and she was assessed to tax on a taxable income of $2,818. She objected to the rejection of her claim to the deduction. The Commissioner having disallowed her objection, she has appealed to this Court.

In support of her appeal Miss Lodge gave oral evidence which I accept. The effect of her evidence was that the expenditure in question was incurred for the purpose of enabling her to devote time and attention to the preparation of bills of cost which she undertook mainly at home and for three weeks in the year at a solicitor's office. She worked under contract for a partnership known as Law Cost which prepared common law bills of cost for solicitors in Melbourne. She was not an employee of the firm and her remuneration was in the form of a commission of four per cent on profit costs.

In the year ended 30th June 1971 the appellant lived on her own in a flat in a suburb of Melbourne. The flat was sufficiently large to enable her to undertake her work there. The work involved an examination and analysis of solicitors' files. It is agreed that of the total sum expended on nursery fees an amount of $42 was referable to the period of three weeks during which she worked in the office of a solicitor and not at home.