Private ruling: Upgrade of travel ticket
Published: August 2012
Ruling period: Year ended 30 June 2012
Date scheme commenced: 1 July 2011

Ruling: Q1: Are you entitled to a deduction for the costs of upgrading your airfares when your travel is for work-related purposes? | 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 (ITAA 1997) deals with general deductions and allows a deduction for all losses or outgoings to the extent to which they are incurred in gaining or producing assessable income, except to the extent that they are outgoings of a capital, private or domestic nature. A deduction is allowable for travel costs incurred by an employee in undertaking work-related travel. In your case, you incurred a cost to upgrade your ticket from economy class to business class. As the travel was work-related, you are entitled to a deduction for the cost you incurred for the upgrade.

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. | Your employer pays for economy airfares for overseas business travel. | You upgrade these fares to business class.