Disclaimer
You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of private advice

Authorisation Number: 1052008430280

Date of advice: 20 July 2022

Ruling

Subject: Deduction - travel

Question

Are you entitled to a deduction under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) for the costs you incurred to voluntarily upgrade your airfares when your travel is for work-related purposes?

Answer

Yes. You are entitled to a deduction under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) for the costs you incurred to voluntarily upgrade your airfares when your travel is for work-related purposes. Although the upgrade expense is incurred voluntarily, it still has the necessary connection with your income earning activities to be deductible under section 8-1 of the ITAA 1997.

This ruling applies for the following period:

Year ending 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

You are employed as a National Marketing Manager.

You are required to travel extensively for interstate and overseas work-related trips.

Your employer's policy is to only pay for economy class tickets. All other travel-related costs are paid by your employer.

You voluntarily pay for flight upgrades to business class for the following reasons:

•         You travel with a laptop and you are required to work during the flight

•         Business class provides you with sufficient room to work during the flight

•         Your work information is confidential and business class provides you with sufficient privacy.

Relevant legislative provisions

Section 8-1 of the Income Tax Assessment Act 1997

Copyright notice

© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).