INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 3 - Deductions  

Subdivision A - General  

SECTION 51AG   DEDUCTIONS FOR TRAVEL EXPENSES WHERE PERSON ACCOMPANIED BY RELATIVE  

51AG(1AA)   [Limited application]  

This section does not apply to travel on or after 1 July 1997.

Note:

Section 26-30 (Relative's travel expenses) of the Income Tax Assessment Act 1997 deals with the deductibility of relatives' travel expenses.

51AG(1)   [Deductibility of expenses of relative]  

Where a person, while undertaking travel in the course of:

(a) performing duties as an employee of an employer; or

(b) a business carried on by the person for the purpose of gaining or producing assessable income;

is accompanied during a particular period by a relative of the person in circumstances where:

(c) the relative is not an employee of the employer of the person, or is not an employee of the person, as the case may be;

(d) the relative is an employee of the employer of the person, or is an employee of the person, as the case may be, and during that period performs no substantial duties as such an employee; or

(e) the relative is an employee of the employer of the person, or is an employee of the person, as the case may be, and:

(i) the duties performed during that period by the relative as such an employee are incidental to the duties, or business, as the case may be, of the person; and

(ii) it is reasonable to conclude that, but for the personal relationship between the person and the relative, the relative would not have accompanied the person during that period;

a deduction is not allowable to the person, and, in a case where paragraph (a) applies, is not allowable to the employer of the person, under section 8-1 of the Income Tax Assessment Act 1997 in respect of a loss or outgoing incurred in respect of the travel, to the extent to which the loss or outgoing is attributable to the relative.

51AG(1A)   [When subsec (1) not applicable]  

The rule in subsection (1) does not apply to expenditure incurred by the provider of a fringe benefit (within the meaning of the Fringe Benefits Tax Assessment Act 1986 ), if the expenditure is in respect of the provision of the fringe benefit.

51AG(2)   [Definitions]  

In this section:

"employee"
and ``employer'' have the meanings given by section 221A .