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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

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Edited version of your private ruling

Authorisation Number: 1012270527789

Ruling

Subject: Upgrade of travel ticket

Question

Are you entitled to a deduction for the costs of upgrading your airfares when your travel is for work-related purposes?

Answer

Yes.

This ruling applies for the following period

Year ended 30 June 2012

The scheme commenced on

1 July 2011

Relevant facts

You are an employee.

Your employer pays for economy airfares for overseas business travel.

You upgrade these fares to business class.

Relevant legislative provisions

Income Tax Assessment Act 1997 Section 8-1

Reasons for decision

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.


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