Private ruling: Deductions - work-related travel expenses
Date of advice: 2 August 2016
Published: September 2016
Ruling period: Year ending 30 June 2016
Date scheme commenced: 1 July 2015

Ruling: Q1: Are you entitled to claim a deduction for air-fares, accommodation and meal expenses you incurred in attending the seminar? | A1: Yes. | Q2: Are you entitled to claim a deduction for accommodation and meal expenses prior to attending the seminar? | A2: No.

Relevant facts and circumstances: You are employed as a registered nurse. You attended a seminar in an Australian state for professional development in respect of your employment. You were not paid an allowance from your employer.

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

Reasons for decision: Summary: You are entitled to claim the expenses you incurred for air-fares, accommodation and meals in relation to attending the seminar, as the expenses were incurred in gaining or producing assessable income. However the expenses you incurred prior to attending the seminar are considered private and are therefore not deductible. | Detailed Reasoning - Detailed reasoning: Section 8-1 of the Income Tax Assessment Act 1997 allows a deduction for all losses or outgoings to the extent to which they are incurred in gaining or producing assessable income, except to the extent that they are outgoings of a private or domestic nature. Taxation Ruling TR 98/9 discusses the circumstances in which self-education expenses are allowable as a deduction under section 8-1 of the ITAA 1997. If a taxpayer's current income-earning activities are based on the exercise of a skill or some specific knowledge and the self-education enables the taxpayer to maintain or improve that skill or knowledge, the self-education expenses are allowable as a deduction. Accommodation and meal expenses are living expenses and as such are intrinsically private or domestic in nature. However, these expenses may be considered to be work related where they are incurred while an employee is travelling on work. In your situation it is accepted that the seminar in question will enable you to maintain or improve the skills that are required for you to perform your employment duties, and that the purpose for undertaking the course is work related. In your case, you are entitled to claim a deduction in relation to the expenses incurred in attending the seminar. Therefore you can claim for the air-fares, accommodation, meals and incidentals incurred in attending the seminar. However the expenses incurred prior to attending the seminar such as accommodation, meals and incidentals are not considered to be incurred in the course of undertaking your income earning activities. The expenses are incurred by you in putting yourself in a position to perform your work duties, rather than in the performance of those duties. Therefore you are not entitled to a deduction for the accommodation, meals and incidentals you incurred prior to attending the seminar as they are considered private in nature.