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Edited version of your written advice
Authorisation Number: 1012694763872
Ruling
Subject: Travel expenses
Question 1
Are you entitled to a deduction for your overseas travel, accommodation, meal and conference expenses?
Answer
Yes.
Question 2
Are you entitled to a deduction for your travel insurance?
Answer
No.
This ruling applies for the following period
Year ended 30 June 2014
The scheme commenced on
1 July 2013
Relevant facts
The arrangement that is the subject of the Ruling is described below. This description is based on the following documents. These documents form part of and are to be read with this description. The relevant documents are:
• the application for private ruling and
• additional information received.
You are employed full time as a professional.
You travelled overseas for a few weeks. The travel was undertaken alone and on work time.
The main purpose for your travel was to attend an international meeting and conferences. You presented papers at the meeting and the conference.
The meeting and conferences has helped with your work.
You received some money through your employer in relation to your travel and incurred costs for your airfares, accommodation, meals, conference fees, travel and travel insurance.
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 except where the outgoings are of a capital, private or domestic nature, or relate to the earning of exempt income, or a provision of the ITAA 1997 prevents it.
Taxation Ruling TR 95/14 Income tax: employee teachers - allowances, reimbursements and work-related deductions states that a deduction is allowable for the cost of attending conferences and seminars to maintain or increase the knowledge, ability or skills required by an employee teacher. There must be a relevant connection between the conference and seminar and the current income-earning activities.
A deduction is allowable for the cost of travel (fares, accommodation and meal expenses), registration and conference material costs incurred in attending work-related conferences or seminars.
In your case, the conferences and meetings attended have a direct connection to your current employment duties.
Therefore your travel expenses are deductible under section 8-1 of the ITAA 1997.
You are entitled to a deduction in relation to your travel, accommodation, meal and conference expenses incurred. Please ensure you keep the relevant records in relation to your expenses.
However, no deduction is allowed for your travel insurance. Travel insurance expenses are inherently private in nature. This was highlighted in Case T78 86 ATC 1094 where a claim for travel insurance was found to be expenditure of a private and domestic nature and therefore not deductible. Travel insurance policies invariably cover items that are generally private in nature, for example, illness, loss of baggage and theft or damage to belongings. As travel insurance is regarded as private in nature, no deduction is allowed for the associated expense.