Private ruling: Travel expenses
Date of advice: 25 August 2016
Published: September 2016
Ruling period: Year ending 30 June 2017
Date scheme commenced: 1 July 2016

Ruling: Question and answer | Are you entitled to a deduction for travel expenses? | No.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You are in receipt of Centrelink payment. You incur expenses associated with travel.

Relevant legislative provisions: Tax Laws Amendment (2012 measures No. 1) Act 2012 section 1.15 | Income Tax Assessment Act 1997 section 26-19 | Income Tax Assessment Act 1997 subsection 26-19(1) | Income Tax Assessment Act 1936 section 160AAA | Social Security Act 1991 part 2.11A

Reasons for decision: Summary: Changes to the deductibility of rebatable benefits such as carer payment were brought about in Section 1.15 Tax Laws Amendment (2012 measures No. 1) Act 2012 which disallows deductions for expenses incurred in gaining or producing a rebatable benefit from 1 July 2011. Section 26-19 of the Income Tax Assessment Act 1997 (ITAA 1997) provides the rules for rebatable benefits. Subsection 26-19(1) of the ITAA 1997 states you cannot deduct under this Act a loss or outgoing to the extent that the loss or outgoing is incurred in gaining or producing a rebatable benefit. Section 160AAA of the Income Tax Assessment Act 1936 defines 'rebatable benefits' to include the payment benefits included under Part 2.19B of the Social Security Act 1997. Application to your circumstances Deductions for expenses you incur that relate to rebatable benefits, such as the payment, are not claimable for the 2012 financial year and later years. Under section 26-19 of the ITAA 1997; you are not entitled to deductions for travel expenses you incurred in relation to the payments.