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Edited version of your private ruling
Authorisation Number: 1012551860896
Ruling
Subject: Work related motor vehicle expenses
Question
Is travel relating to volunteer coaching of a junior sporting team private in nature?
Answer
Yes.
This ruling applies for the following periods:
Year ended 30 June 2014
The scheme commences on:
1 July 2013
Relevant facts and circumstances
You are a volunteer coach of a junior sporting team. You are paid a small honorarium for the services you provide.
You have no children of your own in the sporting team that you coach.
You use a car supplied by a different employer to travel to and from sporting related occasions.
Your employer is incurring a cost by allowing you to use the company vehicle to attend the sporting activities.
Relevant legislative provisions
Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 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 1999/17 discusses the benefits received by individuals from involvement in sport, either as a participant or as an official, such as a referee or coach. The ruling sets out the Commissioner's view as to whether these benefits are assessable under the Income Tax Assessment Act 1936 or the ITAA 1997.
Paragraph 10 of TR 1999/17 states that money and other benefits received from the pursuit of a pastime or hobby are not assessable income. It follows that any related expenses are not allowable deductions from those receipts.
As the income from your volunteer coaching activities is considered a pastime or hobby and therefore the income from the activity is not assessable, the vehicle expenses associated with the activity are considered private in nature and not deductible.