Private ruling: Work related expenses - overseas airfare expense
Date of advice: 16 September 2021
Published: November 2021
Ruling period: Year ended 30 June 2020
Date scheme commenced: 1 July 2019

Ruling: Q1: Are you entitled to a deduction for the work-related expenses you incurred in relation to your trip to China and Hong Kong? | A1: Yes, in your circumstances the additional costs you incurred in relation to your flights are considered a work related expense and are deductible under section 8-1 of the ITAA 1997. Please also refer to TR 2020/1 for further information | Q2: Are you entitled to a deduction for the work-related expenses you incurred in relation to your trip to United Arab Emirates and Europe? | A2: Yes, in your circumstances the additional costs you incurred in relation to your flights are considered a work related expense and are deductible under section 8-1 of the ITAA 1997. Please also refer to TR 2020/1 for further information | Q3: Are you entitled to a deduction for the work-related expenses you incurred in relation to your trip to the United States of America? | A3: Yes, in your circumstances the additional costs you incurred in relation to your flights are considered a work related expense and are deductible under section 8-1 of the ITAA 1997. Please also refer to TR 2020/1 for further information | Q4: Are you entitled to a deduction for the work-related expenses you incurred in relation to your trip to the United Kingdom? | A4: Yes, in your circumstances the additional costs you incurred in relation to your flights are considered a work related expense and are deductible under section 8-1 of the ITAA 1997. Please also refer to TR 2020/1 for further information

Relevant facts and circumstances: As part of your work duties, you are required to travel within Australia and worldwide to conduct your work. Your employer's policy is to pay the economy class airfare for employee's overseas travel. When traveling, you conduct presentations at international venues. You have found it increasingly difficult to travel by air over long distances. Further work commitments usually commence the morning after arrival to your destination. You often complete work during your international flights to prepare for immediate work activities on arrival. You chose to personally upgrade your airfares to business class. In previous years, you paid airfares to business class through a travel agent and you were reimbursed by employer for the cost of the economy class fare. A new arrangement was introduced your employer, where the business class fare was paid by them through Corporate Travel Management and you were subsequently reimbursed by your employer, for the amount of the economy fare upgrade to business class.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 8-1


This ruling applies for the following period periods :