Edited version of private advice

Authorisation Number: 1051985205462

Date of advice: 20 May 2022

Ruling

Subject: Work related travel expenses

Question

Are you entitled to a deduction for travel and accommodation expenses that you incurred whilst travelling to complete specific tests and licence re-certification as an employed Pilot under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997)?

Answer

Yes.

Considering your circumstances and the relevant factors, you are entitled to a deduction for your work-related travel and accommodation expenses to the extent they are incurred in gaining or producing assessable income under section 8-1 of the Income Tax Assessment Act 1997. Further information on the Commissioner's view can be found in Taxation Ruling 2020/1 Income Tax: employees: deductions for work expenses under section 8-1 of the Income Tax Assessment Act 1997.

Information generally on claiming work-related travel expenses including how to apportion travel expenses, between private and work purposes, can be found on our website ato.gov.au and entering quick code QC31982 into the search bar at the top right of the page.

This private ruling applies for the following period:

Year ended 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

You are a first-class commercial pilot.

You have been employed as an airline Pilot since xxx xxxx and are currently on secondment.

In xxx xxxx you underwent a physical examination which found that you did not meet the requirements for an unlimited first-class medical certificate. You were issued with a medical certificate with limitations.

It is a condition of your employment that you maintain a valid and current medical licence. If you do not meet the conditions, then under Civil Aviation Safety Authority requirements, any change in a pilot's medical condition that lasts longer than seven days means you must be grounded and are disqualified from performing your duties.

Due to COVID restrictions the Federal Aviation Authority (FAA) authorised delegates in Australia were restricted from person-to-person contact. Sites that were available for the licencing requirement overseas were partially restricted.

In xxx xxxx you were authorised to take the necessary test, but these were only available in another location with the authorisation being valid for 6 months only.

As these tests were not available locally and as advised by the FAA, these tests were required to ensure your medical certification was reinstated.

You travelled to meet the licencing requirements for your continued employment as a first-class commercial pilot.

Any expenses associated with your medical certification were your responsibility, and you did not receive any financial support from your employer.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1