Edited version of private advice

Authorisation Number: 1052108162938

Date of advice: 8 May 2023

Ruling

Subject: Work related expenses - travel

Question

Are you entitled to a deduction for the work-related travel expenses you incurred in relation to your role as a travel industry employee?

Answer

Based on the information provided to the Commissioner, you are entitled to a deduction for travel expenses under Section 8-1 of the Income Tax Assessment Act 1997 when travelling for work purposes. As the occasion of the travel expenses can be found in your employment duties, the expenses will be incurred in gaining or producing your assessable income.

This ruling applies for the following periods:

Year ended 30 June 20XX

Year ended 30 June 20XX

Year ended 30 June 20XX

Year ended 30 June 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

You work as an employee in the travel industry with XXX.

Apart from your initial employment contract from XXX, there are no other specific employment contracts in place. XXX is a boutique arm of XXX where travel consultants run their business activities autonomously.

Your role is to take groups of corporate and VIP clients on overseas trips, conference holidays and executive-style holidays. You organise itineraries, make bookings (for travel, accommodation, restaurants and activities), and do pre-event reconnaissance. Whilst travelling with clients you also perform the travel guide role. You are also required to stay in the same accommodations as those clients and you must dine in the same restaurants and participate in all activities.

The reconnaissance trips were to scope multiple aspects in preparation for the client's event.

The pre-event reconnaissance was to ensure that the destination and ground handlers and all arrangements were 'safe' and met with travel insurance guidelines. It was also to investigate how to 'value add' to the event in order to upsell the client and increase the overall value of the event - which in turn would create more profit for your employer.

The pre-event trips lasted for about 4-5 days, and you had very little downtime whilst you were working during these trips.

Your work-related travel expenses are between $XX to $XX per year for flights, accommodation, and other incidental costs.

You did not use any leave entitlements to undertake the travel for site visits and pre-event reconnaissance. These trips were not counted as leave as they were working trips.

You were not reimbursed by your employer for your travel expenses.

Your base income retainer per year was consistently around $XX to $XX. Additional commission income was paid at approximately X% of profit that you generated for your employer.

The current general manager of your employer provided a letter outlining your role and some of the services you as luxury travel consultant and event manager.

You keep detailed travel records and invoices to support your work-related travel expenses which meet the requirements for substantiation under Division 900 of the Income Tax Assessment Act 1997.

Relevant legislative provisions

Section 8-1 of the Income Tax Assessment Act 1997

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