Private ruling: Deductions - gift or donation
Published: August 2012
Ruling period: Year ended 30 June 2012
Date scheme commenced: 01 July 2011

Ruling: Q1: Are you entitled to a deduction for the expenses that you incurred to undertake volunteer work? | A1: No.

Relevant facts and circumstances: You are an employee. You volunteered your services to a non-profit organisation. As part of your services, you were required to travel. You incurred expenses in relation to undertaking your volunteer work.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 8-1 | Income Tax Assessment Act 1997 Division 30

Reasons for decision: Detailed Reasoning - Work related expense: 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. In your case, you travelled to undertake volunteer work. As your services were volunteered, you did not receive any assessable income for this work. Accordingly, as the expenses are not related to the gaining or producing of assessable income, you are not entitled to a deduction under section 8-1 of the ITAA 1997. | Detailed Reasoning - Gift or Donation: Division 30 of the ITAA 1997 provides that you can deduct a gift or contribution that you make in certain situations. The gift may be in the form of money or, where certain conditions are met, property. Taxation ruling TR 2005/13 provides that the provision of services to a deductible gift recipient by a volunteer does not constitute a gift, as the ordinary meaning of property does not include services. Likewise any expenditure incurred by a volunteer in the course of providing the unpaid services does not constitute a gift. In your case, you incurred expenses whilst undertaking volunteer work. As volunteer work is considered to be a provision of services, the expenses that you incurred in relation to this do not constitute a gift or donation. Therefore, you are not entitled to a deduction for any of these expenses under Division 30 of the ITAA 1997.

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