Private ruling: Travel expenses
Published: October 2014
Ruling period: Year ended 30 June 2014
Date scheme commenced: 1 July 2013

Ruling: Q1: Are you entitled to a deduction for the work related portion of your overseas travel, accommodation and car expenses? | A1: Yes.

Relevant facts and circumstances: You are a lecturer. Your employment duties relate mainly to research and lecturing. You undertook a professional experience program. The program is designed to further develop your professional and vocational knowledge, obtain practical experience, undertake research and acquire new skills and professional competencies. As part of the program you travelled overseas. During your travel you were able to improve your research and teaching. You received a travel allowance from your employer. You incurred expenses for travel, accommodation and car hire. You are able to apportion the costs between business and private purposes.

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) 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, or a provision of the ITAA 1997 prevents it. Taxation Ruling TR 95/14 Income tax: employee teachers - allowances, reimbursements and work-related deductions states that a deduction is allowable for the cost of attending conferences and seminars to maintain or increase the knowledge, ability or skills required by an employee teacher. There must be a relevant connection between the conference and seminar and the current income-earning activities. A deduction is allowable for the cost of travel (fares, car hire and accommodation) incurred in attending work-related events. In your case, you participated in a professional experience program and travelled overseas to aid your research and improve your teaching techniques. Participation in the program has a direct connection to your current employment duties. Therefore, you are entitled to a deduction for the work related proportion of your travel, accommodation and car hire expenses incurred under section 8-1 of the ITAA 1997.