Private ruling: travel expenses
Published: July 2012
Ruling period: Year ended 30 June 2008 | Year ending 30 June 2009 | Year ending 30 June 2010 | Year ending 30 June 2011
Date scheme commenced: 1 July 2007

Ruling: Q1: Are you entitled to claim the difference between the Commissioner's reasonable travel allowance provisions and the work related travel contributions made by your employer for domestic and overseas travel? | A1: No

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You travel interstate and overseas for work. You do not receive a travel allowance. Your employer makes a contribution towards your meals and accommodation costs.


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. A deduction is only allowable if an expense: · is actually incurred · meets the deductibility tests · satisfies the substantiation rules. A deduction is allowable for travel expenses incurred by an employee when travelling in the course of employment providing the necessary substantiation requirements are met. As a general rule, written evidence is required to substantiate any expense you wish to claim as a deduction. Subdivision 900-B of the ITAA 1997 sets out the substantiation requirements for work expenses and provides for exceptions in certain circumstances. Section 900-50 of the ITAA 1997 provides an exception for certain domestic travel allowance expenses. Subsection 900-30(3) of the ITAA 1997 states that a travel allowance is an allowance your employer pays you to cover losses or outgoings that you incur for travel away from your ordinary residence that you undertake in the course of your duties as an employee and that are losses or outgoings for accommodation or for food or drink or are incidental to the travel. For domestic or overseas travel allowance expenses to be considered for exception from substantiation, the employee must be paid a bona fide travel allowance to cover specific travel. A bona fide travel allowance is one which is paid upon each instance of travel, rather than a lump sum or an amount rolled into ordinary wages. As you did not receive a travel allowance the exception available under section 900-50 of the ITAA 1997 does not apply to you. As such you are not entitled to claim up to the reasonable allowance listed in the various Taxation Determinations for the relevant years. In order to claim food and accommodation expenses in relation to travel for work you will need to be able to substantiate your claim. Additionally, you are not able to simply claim the difference between an allowance and reasonable amount as the full amounts of a bona fide allowance is required to be declared as income and the expenses claimed as expenses.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.