Edited version of private ruling

Authorisation Number: 1011618564138

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Ruling

Subject: work related expenses

Question

Are you entitled to a deduction for expenses incurred in attending and supervising students on a school excursion?

Answer: No.

This ruling applies for the following period

Year ended 30 June 2010

The scheme commenced on

1 July 2009

Relevant facts

You were a supporting staff member as part of a school trip for students.

The school was unable to support the staff in any way financially and the students could only go with full staff support and supervision.

This meant you paid your own way as one of the staff members to enable the trip to go ahead.

Your trip included two extra nights accommodation in city A.

While in city A you paid for four of your meals yourself.

You hired equipment and bought passes to enable you to supervise the students at the venue.

As a staff member you paid the same trip fee as the students.

Relevant legislative provision

Income Tax Assessment Act 1997 Section 8-1.

Reasons for decision

Summary

You are not entitled to a deduction for expenses incurred in attending and supervising students on a school excursion.

Detailed reasoning

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.

Taxation Ruling TR 95/14 examines the deductibility of certain expenses incurred by teachers. Included in the ruling are the situations where teachers incur expenses in attending school excursions.

Generally, a teacher is allowed a deduction for expenses they incur when accompanying students on excursions or trips where the trip is relevant to the teacher's employment. To be relevant to the teacher's employment, the trip should be part of the schools curriculum or syllabus of the school. A supervisory role by itself is not sufficient to make the expenses deductible.

TR 95/14 provides an example where a science teacher accompanies biology students on a trip to a national park to study the ecology of the rainforest. In this example, expenses incurred by the teacher would be deductible as the trip has a direct relevance to the curriculum.

In some instances, whilst the trip may not be part of the school's curriculum, it forms an integral part of the school's extra-curricular activities. Where a teacher incurs expenses in accompanying students on such activities, the expenses would generally be deductible. For instance, a teacher is coach of a school sport team and accompanies the team on a trip to another town to participate in an interschool competition. The sports team is representing the school and it is accepted that these expenses would be deductible. Further examples of extra-curricular activities would include tours by the school band and attending interschool debating competitions.

Another example provided in TR 95/14 is where a teacher accompanies students to visit a sister school overseas. Attendance of the trip is open to any student of the school. While on the trip, 6 out of the 10 days are spent engaging in social, classroom and sporting activities. The remaining days are spent touring the country. In this case, the trip does not form part of the school's curriculum as the trip is open to all students. Even though the trip may provide social and cultural benefits to the students, the teacher's expenses are not deductible.

In your situation, you accompanied students on a trip in a supervisory role. We acknowledge the students would not have been able to undertake this trip without full staff support and supervision. However, a supervisory role is not sufficient to make the expenses deductible and unlike the science teacher in TR 95/14, it is considered that the trip has no direct relevance to the school's curriculum.

The trip is also not accepted as being part of the school's extra-curricular activities as the students were not competing and representing the school.

Your situation is considered to be similar to the teacher who accompanied students to the sister school overseas and that you are not entitled to a deduction for expenses you incur in accompanying the students on the trip.