Private ruling: Passport expenditure
Date of advice: 4 May 2016
Published: June 2016
Ruling period: Year ending 30 June 2016
Date scheme commenced: 1 July 2015

Ruling: Q1: Are you entitled to a deduction for the expense incurred in obtaining a passport? | A1: No.

Relevant facts and circumstances: You are required to travel overseas for your employment. You are an Australian citizen and you require an Australian passport to enable you to travel overseas. You have obtained an Australian passport at your own expense and don't undertake any private travel overseas.

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. The expenses associated with acquiring passports relate primarily to the taxpayer's personal right to travel to any overseas destination. They closely parallel the costs associated with obtaining a driver's licence, which were characterised as being of a private nature (Case P55 82 ATC 253; 25 CTBR (NS) 824 Case 117). Thus expenditure in obtaining a passport is private in nature. In your case, you have incurred expenditure in obtaining a passport to enable to you travel overseas for your employment. The expense in obtaining a passport relates to your personal right to travel to any overseas destination. The expense associated with obtaining your passport, is considered to be private in nature. Therefore, you are not entitled to a deduction.