Private ruling: Travel
Published: December 2013
Ruling period: Year ended 30 June 2013
Date scheme commenced: 1 July 2012

Ruling: Q1: Are you entitled to a deduction for 50% of your flights to attend a conference overseas? | A1: Yes.


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 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. Taxation Ruling TR 98/9 discusses the circumstances under which self education expenses are allowable as a deduction. A deduction is allowable for self education expenses if a taxpayer's current income earning activities are based on the exercise of a skill or some specific knowledge and the subject of the self education enables the taxpayer to maintain or improve that skill or knowledge ( Federal Commissioner of Taxation v. Finn (1961) 106 CLR 60, (1961) 12 ATD 348). Airfares incurred on overseas work related conferences or seminars are deductible. They are part of the necessary cost of participating in the tour or attending the conference or seminar or the educational institution. However, as discussed in TR 98/9 the expense must be apportioned where there is a dual purpose for the travel. As highlighted in TR 98/9, if the travel was undertaken equally for income earning purposes and for private purposes the expenses would be apportioned equally. In your case, your travel is considered to be for a dual purpose. Therefore, you are entitled to claim 50% of the cost of your flights.

You attended a Forum overseas relating to your field of employment. | You travelled overseas and attended a pre-conference course prior to the Forum. | After the Forum, you met up with your spouse and had a holiday prior to returning home.