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Edited version of private ruling
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Ruling
Subject: Expenses associated with volunteer services
Question
Are you entitled to a deduction under the gift provisions where you incur expenses whilst volunteering for a deductible gift recipient (DGR)?
Answer:
No.
This ruling applies for the following period
Year ending 30 June 2011
The scheme commenced on
1 July 2010
Relevant facts and circumstances
You volunteer your services with a DGR.
You incur expenses in relation to the use of your car and the provision of food when undertaking your volunteer work with the DGR.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 30-15.
Income Tax Assessment Act 1997 Section 30-45.
Reasons for decision
Section 30-15 of the Income Taxation Assessment Act 1997 allows a deduction for gifts made to a DGR in certain situations. Taxation Ruling TR 2005/13 explains what a gift is for these purposes.
The making of a gift must involve the transfer of a beneficial interest in property. Services volunteered are not gifts as there has not been a transfer of any property. Likewise, any expenses borne by a volunteer in providing these services do not involve the transfer of any property.
In Case S43 85 ATC 343; (1985) 28 CTBR (NS) Case 49, the Board of Review examined the situation where a taxpayer incurred car, postage and telephone expenses in the course of undertaking voluntary work for a DGR. The Board held that they did not make a gift of money or property to the DGR, but were simply providing their services and their claim regrettably must fail.
In your situation, you incur car and food expenses when undertaking your voluntary work with the DGR. As with Case S43, you have not made any gift of money or property but have simply provided your services.
Consequently you are not entitled to a deduction for these expenses as a gift.