Private ruling: Deductions – travel expenses
Date of advice: 9 August 2018
Published: September 2018
Ruling period: Year ending 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Is a deduction allowable for your travel (airfares), accommodation, meals and incidental expenses when travelling away from your overseas base to tournaments and between tournaments as a professional sportsperson? | A1: Yes. 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. There is a direct connection between your activities performed as a professional sportsperson and the expenses incurred for travel (airfares), accommodation, meals and incidental expenses when travelling away from your overseas base to tournaments and between tournaments as a professional sportsperson. Those expenses incurred in these circumstances are not considered to be private in nature. You have to be able to substantiate the expenses in order to be able to claim a deduction.

Relevant facts and circumstances: You are a professional sportsperson. You are an Australian resident for tax purposes. You will be re-locating to an overseas country for a period and will set up a base. You will use the overseas base to practice your profession. You will be travelling away from your overseas base for between one and three weeks at a time in order to play in various tournaments.

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