Private ruling: Deductions
Date of advice: 9 January 2019
Published: April 2019
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to claim deductions for expenses (air fare and incidentals) incurred while performing volunteer work for a charity? | A1: No

Relevant facts and circumstances: You are a doctor. You volunteer your services to a charity. The charity is registered in Australia. You will be working on the ship for the period of XX months. You will not receive any income while working for the charity. You will incur expenses including air fares and incidentals. You will be based overseas while working for the charity.

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 (ITAA 1997) provides that you may deduct from your assessable income any loss or outgoing to the extent that: ● it is incurred in gaining or producing your assessable income; or ● it is necessarily incurred in carrying on a business for the purpose of gaining or producing your assessable income. As the expenses incurred are in relation to voluntary work and not in gaining or producing assessable income, a deduction under section 8-1 of the ITAA 1997 cannot be allowed.