Private ruling: Deduction - travel
Date of advice: 20 July 2022
Published: October 2022
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to a deduction under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) for the costs you incurred to voluntarily upgrade your airfares when your travel is for work-related purposes? | A1: Yes. You are entitled to a deduction under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) for the costs you incurred to voluntarily upgrade your airfares when your travel is for work-related purposes. Although the upgrade expense is incurred voluntarily, it still has the necessary connection with your income earning activities to be deductible under section 8-1 of the ITAA 1997.

Relevant facts and circumstances: You are employed as a National Marketing Manager. You are required to travel extensively for interstate and overseas work-related trips. Your employer's policy is to only pay for economy class tickets. All other travel-related costs are paid by your employer. You voluntarily pay for flight upgrades to business class for the following reasons: • You travel with a laptop and you are required to work during the flight • Business class provides you with sufficient room to work during the flight • Your work information is confidential and business class provides you with sufficient privacy.

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