Private ruling: Work related expenses
Published: July 2013
Ruling period: Year ended 30 June 2014
Date scheme commenced: 1 July 2013

Ruling: Q1: Are you entitled to a deduction for the expenses you incurred? | A1: Yes.

Relevant facts and circumstances: You are employed full time. You were advised of an educational trip through a work communication, the topic of which relates strongly to your field of work in your current position, and which will aid in your professional development. Your employer can not afford to send you to participate in the trip or reimburse you for any of the expenses. Therefore it is not compulsory for you to attend. However they encouraged you to attend as the information and knowledge you will gain from the trip will also assist other staff in the organisation. You will most likely give a presentation/information package summarising your findings and experiences to other staff in your local and national offices. You will take annual leave from work for the trip.

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 provides the Commissioner's view on the deductibility of self-education expenses. It states that self-education expenses are allowable as a deduction where your income earning activities are based on the exercise of a skill or some specific knowledge, and the subject of self-education enables you to maintain or improve that skill or knowledge. In your case, it is accepted that the trip will maintain or improve the skill and knowledge required for you to perform your employment duties. Consequently, the expenses you will incur in undertaking the trip are deductable.