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

Ruling: Q1: Are you entitled to a deduction for the cost of obtaining a visa? | A1: No.


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 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. Expenses are considered to have been incurred in gaining or producing assessable income where they are related to the production of assessable income. Expenses incurred to obtain a visa are not expenses incurred in the production of assessable income. The expenses are incurred to place a taxpayer in a position to be able to earn income, rather than in the completion of their work related duties. Alternatively, the predominant purpose of obtaining the visa is to allow a person to remain and work legally in Australia rather than earn assessable income. Therefore the expense of obtaining the visa is considered private or domestic in nature. As the expenses incurred in obtaining the visa are not incurred in gaining or producing assessable income or are private or domestic in nature, they are not tax deductible.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet. | Relevant facts: You lodged an application for a visa in late 2011. A visa was granted for a six year period from early 2012. | You are employed since early 2012.