Private ruling: Work related travel expenses
Date of advice: 10 November 2020
Published: January 2021
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to a deduction for the cost of airfares, accommodation, meals and educational tours that you incurred as a support person on a school excursion overseas? | A1: Yes. | Q2: Are you entitled to a deduction for the cost of travel insurance? | A2: No.

Relevant facts and circumstances: You are employed as a High School teacher. In 20XX you were also the Year XX Advisor at your school. You were asked to attend a study tour school excursion overseas to assist with supervision of the students as an assistant. The tour was organised by the school. You provided a letter from the Acting Principal of your school stating you were selected to attend the tour as you were the Year advisor and based on your ability to address risk management processes and procedures. You and one other teacher hold an Anaphylaxis certificate in the case any student has an allergic reaction whilst away on the tour. Your supervision duties during the excursion are similar to your current duties in the school environment. You have provided a breakdown of the daily activities and explained the educational value these will have on the students and how they relate to the syllabus. The travel expenses you incurred include airfares, accommodation, meals, educational tours and travel insurance. You were not reimbursed for any of the expenses paid. You were not accompanied by a partner or relative on the trip.

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

Reasons for decision: Detailed Reasoning - Work-related travel expenses: Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) allows a deduction for losses or outgoings to the extent to which they are incurred in gaining or producing assessable income except where the losses or outgoings are of a capital, private or domestic nature. Taxation Ruling TR 95/14 Income tax: employee teachers - allowances, reimbursements and work-related deductions provides the Commissioner's view on the deductibility of common work-related expenses incurred by employee teachers. We consider the ruling is applicable in your case as you form part of the school staff. TR 95/14 states: A deduction is allowable under subsection 51(1) of the Act for the costs incurred by an employee teacher when accompanying students on excursions, educational and sporting trips and camps only if these trips are undertaken by an employee teacher in the course of gaining assessable income and they are not private, domestic or capital in nature.• Some factors that would be considered in determining the relevance of these trips to an employee teacher's employment would include the purpose of the trip, the activities undertaken, and the duties of the employee teacher while on the trip. The purpose of the trip and the activities undertaken should have an educational benefit and be related to the curriculum or syllabus of the school. In your case, the excursion was organised by the school. Your duties on this trip are similar to the current duties you undertake in your employment, including assisting the teachers to supervise the students. The purpose of the trip and the activities undertaken had an educational benefit and related to the syllabus of the school. From the information you have provided, you satisfy the requirements of TR 95/14, therefore, your travel expenses are considered as work-related. | Detailed Reasoning - Travel insurance: The Administrative Appeals Tribunal (AAT) held in Case T78 86 ATC 1094 that the cost of travel insurance is private in nature, as the policy generally covers illness, loss of baggage, and theft or damage to belongings, which are expenses that are essentially private in nature. Therefore, you are not entitled to a deduction for the cost of travel insurance under section 8-1 of the ITAA 1997.