Private ruling: Private expenses
Date of advice: 25 June 2015
Published: June 2015
Ruling period: Year ended 30 June 2015
Date scheme commenced: 1 July 2014

Ruling: Q1: Are you entitled to claim a deduction for conference expenses? | A1: No.


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

Reasons for decision: Summary: Section 8-1 of the 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. To be deductible under section 8-1 of the ITAA 1997 there needs to be a sufficient connection between the expenditure and the production of assessable income so that the outgoing is incidental and relevant to the gaining of assessable income ( Ronpibon Tin NL v. FC of T (1949) 78 CLR 47; (1949) 8 ATD 431). You are involved with the work of your former employer although you have retired from employment. You are in receipt of superannuation payments and the amount of these payments does not change with any involvement you have with your former employer. You have incurred expenses to attend a conference associated with the work you have maintained an interest in. An expense that is not incurred in earning or gaining assessable income is not deductible. In your case, you incurred an expense to attend a conference; however it was not incurred to enable you to receive your superannuation income. The conference expense is not incurred in gaining or producing your assessable income. Therefore, you are not entitled to a deduction under section 8-1 of the ITAA 1997.

Relevant facts: You are retired from work and are in receipt of regular superannuation payments. | Your superannuation benefits are regulated by a government scheme. | You remain involved with your former work and as a consequence have attended a conference. | Your superannuation entitlements do not change with the extent that you are involved with your former work.