Private ruling: Travel expenses
Published: October 2012
Ruling period: Year ended 30 June 2012
Date scheme commenced: 1 July 2011

Ruling: Q1: Are you entitled to a deduction for travel expenses? | A1: Yes.

Relevant facts and circumstances: You travelled to attend an event. At the event you were representing your employer and were responsible for and in charge of several other fellow employees who were also attending the event. At the event you undertook duties that you also perform as part of your normal duties. You were granted miscellaneous leave to attend the event. Your employer considers that you were on duty when you attended the event.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 8-1

Reasons for decision: Summary: Section 8-1 of the Income Tax Assessment Act 1997 (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. A deduction is allowable for the costs incurred by an employee in undertaking work-related travel. An example is where an employee attends a seminar interstate. Travel expenses include the costs of accommodation, fares, meals and incidentals. While attending the event you were representing your employer. You were on duty and in command of all staff in attendance. You were granted miscellaneous leave to attend the event. As you were on duty, participating as an official representative and the activities you were undertaking at the event are part of your normal income earning activities, you are considered to have been undertaking work-related travel. Therefore, you are entitled to a deduction for the travel expenses you incurred.

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