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Edited version of private advice
Authorisation Number: 1051661840923
Date of advice: 23 April 2020
Ruling
Subject: Work related expenses
Question
Can you claim a deduction under section 8-1 of the ITAA 1997 for the costs you incurred under your work related sabbatical research project in Country A and Country B and attending work conferences in Country C, Country D and Country E.
Answer
Yes.
Taxation Ruling TR 98/9 sets out the Commissioner's view in relation to the deductibility of self-education expenses under section 8-1 of the Income Tax Administration Act 1997. Self-education expenses that are allowable under section 8-1 of the ITAA 1997 include course or conference fees, airfares incurred on overseas study tours or sabbatical, on work-related conferences or seminars and where a taxpayer is away from home overnight, accommodation and meals expenses incurred on overseas study tours or sabbatical, on work-related conferences or seminars, or attending an educational institution.
Based on the information provided we accept that there is a nexus between your income earning activities and your travel expenses. Therefore, you are entitled to a deduction for the costs incurred in relation to your overseas research projects and work conferences.
Please note that the substantiation requirements for work related expenses apply. Refer to Division 900 of the ITAA 1997.
This ruling applies for the following period:
Year ended 30 June 2019
The scheme commences on:
1 July 2018
Relevant facts and circumstances
You are employed as an Associate Professor at a University.
You commenced employment in 20XX.
From XX July 20XX until XX December 20XX you were approved OPS leave (commonly known as sabbatical leave). The Outside Study Program (OSP) involved travelling overseas.
Throughout this period you were conducting research at University A and University B.
You attended conferences overseas to present your presentations from your University to other academics in the field.
The OSP assisted in improving your research and teaching skills for your future postgraduate and undergraduate students.
You maintained your full time employment status and you were on full pay during that time.
You were paid a travel grant by your employer, which was recorded as a travel allowance in your 2017/18 annual payment summary.
You incurred accommodation, travel, incidentals and meal expenses during the sabbatical.
Throughout the study period you stayed in hotels, apartments and a house.
You were accompanied by your spouse and child during the sabbatical. You maintained your home in Australia and it was not rented out.
On your return back from overseas you prepared a written report on your work carried out during your OSP.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1
Income Tax Assessment Act 1997 division 900