Edited version of private ruling

Authorisation Number: 1011605500548

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Ruling

Subject: Work related expenses - travel

Question

Are you entitled to a deduction for your travel between your home and the academy and back home?

Answer: Yes.

This ruling applies for the following period:

Year ended 30 June 2010

The scheme commences on:

1 July 2009

Relevant facts and circumstances

You are employed as a police officer.

In regional areas there is an officer trained to be able to qualify officers and provide the required annual training in their area.

You attended a course and are now able to provide training and qualify officers in your area.

The course took three weeks to complete and was a live in course which ran Monday to Friday.

You drove your private vehicle to attend the course and your family accompanied you. They stayed with relatives and friends.

You have not made a claim or been reimbursed for your travel costs.

You took the opportunity while there to inspect your current rental property and look for a new rental property to purchase, a property was found and a contract was entered into.

You will use the cents per kilometre method to calculate your car expense.

Reasons for decision

Section 8-1 of the Income Tax Assessment Act 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 relate to the earning of exempt income.

Taxation Ruling TR 95/13 provides the Commissioner's view on the deductibility of various expenses that may be incurred by police officers. A deduction is allowable for the cost of self education if there is a direct connection between the self education and a police officer's current income-earning activities. This particularly applies if a police officer's income-earning activities are based on skill or knowledge and the education enables him or her to maintain or improve that skill or knowledge. Self education costs can include fees, travel, books and equipment.

Paragraphs 153 to 156 in TR 95/13 states that the Police Academy is an establishment where police officers undertake structured training programs. It provides on-going in-house training, skill maintenance courses and firearms training for police officers. It is therefore considered to be a place of education. A deduction is allowable for the costs incurred for travelling between home and the Police Academy at the commencement of the course and back again at the conclusion on the course.

Motor vehicle expenses - cents per kilometre

Section 28-25 of the ITAA 1997 states a deduction under the cents per kilometre method is calculated by multiplying the number of business kilometres the car travelled in the income year by the number of cents based on the engine capacity of the car.

Even if you travel more than 5,000 business kilometres, you can still use this method but your claim will be restricted to the 5,000 kilometre limit.

Your situation

In your case, it is accepted that the course you attended will maintain and enhance the skills that are required to perform your current employment duties. The travel expenses incurred in undertaking the course have the necessary and relevant connection with the earning of your assessable income.

The main purpose of your trip was to attend the course, and this purpose does not change just because your family accompanied you on the drive. The car expenses you incurred in attending the course are deductible as they are part of the necessary costs in attending the course.