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Edited version of private ruling
Authorisation Number: 1011833230008
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Ruling
Subject: Travel expenses for carer
Question
Are you entitled to a deduction for expenses incurred to take a carer/companion with you on an overseas trip?
Answer
No.
This ruling applies for the following periods
Year ended 30 June 2011
Year ended 30 June 2012
The scheme commenced on
1 July 2010
Relevant facts
You will be undertaking a work related trip overseas which will be paid for by a foreign government.
You have a medical condition.
Your doctor has stated that it is vital that you have an assistant or companion with you on your trip to ensure your safety.
Your spouse will be travelling with you to assist you with your health. Your spouse does not have any duties relating to your employment. .
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1
Income Tax Assessment Act 1997 Section 26-30
Reasons for decision
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 are specifically denied by another section.
Section 26-30 of the ITAA 1997 prevents a deduction in respect of expenditure attributable to relatives who accompany you when you travel in the course of your employment. However if the relative accompanying you performs substantial duties as your employer's employee or as your employee, and it is reasonable to conclude that your relative will still accompany you, even if he or she does not have a personal relationship with you, then the expenses will be deductible.
In this case, while we accept that you need assistance for your personal security and safety, your spouse does not perform duties as either your or your employer's employee. The expenses incurred are not directly incurred in producing your assessable income and are of a personal nature. Therefore, a deduction is not allowable for the expenses incurred for your spouse's travel.
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