Edited version of your private ruling

Authorisation Number: 1012580486002

Ruling

Subject: Travel expenses

Question

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

Answer

No

This ruling applies for the following period

Year ended 30 June 2013

The scheme commenced on

1 July 2012

Relevant facts

You are employed at a College and are responsible for student activities.

The college arranged an excursion to an overseas country during September and October 20xx on which a number of students attended.

The trip was open to grade xx and xx students only.

The purpose of the excursion was to visit and work in schools and pre-schools.

You were required to form part of a team in order for there to be a responsible teacher/staff member on the visit, which had the authority to act should issues arise and insure the care and welfare of the students was monitored.

During the visit to the overseas country, staff and students lived in the village helping out at the schools.

Work was undertaken with teachers and aides and learning activities were carried out with the children, giving them instruction on oral and other associated health matters.

The group also assisted students with homework as well as English language matters.

You have incurred expenses for airfares, insurance and meals.

Relevant legislative provisions

Income Tax Assessment Act 1997 Section 8-1

Reasons for decision

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. No deduction is allowable where the losses and outgoings are of a capital, private or domestic nature or are incurred to gain or produce exempt income.

The Commissioner's view on the deductibility of teacher's work related expenses is set out in Taxation Ruling TR 95/14.

Some factors that would be considered in determining the relevance of these trips to an employee teacher's employment would include the purpose of the trip, the activities undertaken, and the duties of the employee teacher while on the trip. The purpose of the trip and the activities undertaken should have an educational benefit and be related to the curriculum or syllabus of the school.

It would also be expected that the employee teacher participates in the task of supervising students. If the trip does not have a direct connection to the syllabus of the school, an employee teacher's supervisory role would not be sufficient to make the employee teacher's expenses deductible.

In Case R42 84 ATC 357; (1984) 27 CTBR (NS) Case 97, a lecturer at a college of advanced education was allowed a deduction after he was able to demonstrate that his expenses in accompanying a group of trainee students on a trip to Fiji were incurred in the course of his duties. He demonstrated that the excursion formed part of the official college program; was compulsory for all students, and that staff involved in teacher-education courses were expected, as part of their employment, to participate in various out-of-college activities.

Whilst relevance to the school curriculum is an important factor in determining the character of such trips, a deduction is not necessarily denied in the absence of this factor. In some instances, the reason for the trip and the activities undertaken will not be curriculum-related but may be an integral part of the extra-curricular activities of the school. If an employee teacher is involved in such activities and accompanies students as a representative of the school, the expenses incurred by the employee teacher would be allowable. Examples of such activities would be attendance at school-related sporting events, tours conducted by the school band and attendance at competitions by student representatives of the school.

Although the trips may be approved by the school and the opportunity to go on these trips provides social and cultural benefits to the students and employee teachers, these factors alone do not suffice to make the expenses in relation to the trip deductible.

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 case, the trip was open to all students from years xx and xx and was not part of the curriculum of any particular course. It is acknowledged that the students may have gained some cultural and social benefits from the trip. However, a supervisory role is not sufficient to make the expenses deductible.

Furthermore, the activities undertaken by the students on the trip did not relate to any integral extra-curricular activities of the school such as a sporting event or a musical tour. The students were not travelling to represent the school in any particular event or competition.

It is considered that the expenses related to your trip are not deductible as they are not related to your income earning activities, and are private in nature.