Private ruling: Work related travel deductions
Date of advice: 13 November 2017
Published: April 2018
Ruling period: Year ending 30 June 2016 | Year ending 30 June 2017
Date scheme commenced: 01 July 2015

Ruling: Q1: Are you entitled to claim work related travel expenses in relation to a tour? | A1: Yes

Relevant facts and circumstances: You had begun working as an educator at which time you were requested to act as tour manager on the student tour. Your position imposed upon you the responsibility for the students` education, discipline and wellbeing including during the tour. You paid the fees to attend the tour directly to the school. You attended the tour in accordance with the itinerary set out for the school group.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 900-115 | Income Tax Assessment Act 1997 Section 900-20

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. Most self-education expenses are incurred voluntarily and to be allowable under section 8-1of the ITAA 1997, the expenditure must be characterised as having been incurred in gaining or producing assessable income Taxation Ruling IT 2198 deals with allowable deductions for voluntary expenditure incurred by employee taxpayers. Paragraph 13 states that the Taxation Boards of Review have seen a number of teachers seeking income tax deductions for overseas travelling expenses. Most of the claims were rejected because the teachers were not able to establish a positive connection between the overseas travel and the performance of their duties of employment as teachers. In the ultimate the claims have been based on a general proposition that the overseas travel has made the taxpayers better able to carry out their duties which, of itself, is not sufficient to enable the expenditure to be allowed as a deduction. In your case however the primary purpose of your travel was related directly to your employment as an educator and the obligations imposed upon you while in that position. The duties you had while on tour are the same as those that you have while working in Australia and therefore can be seen as a continuation of your responsibilities as an educator rather than a separate event and so the related expenses met the requirements of Section 8-1 of the Income Tax Assessment Act 1997 .