Edited version of private advice

Authorisation Number: 1052381165255

Date of advice: 3 April 2025

Ruling

Subject:Deductions - travel allowance

Question

Are you able to claim a tax deduction for a work-related professional renewal leave trip, which your employer paid you a travel allowance for?

Answer

Yes. You are entitled to claim a deduction for $XX in the year the expenses were incurred. You have shown that there is sufficient connection between the pilgrimage and your employment. For additional information on how long to maintain your records, search www.ato.gov.au for QC 72206 - Records you need to keep.

This ruling applies for the following period:

Year ended 30 June 20XX

The scheme commenced on:

XX XXXX 20XX

Relevant facts and circumstances

You have employment duties involving being a principal.

From XX XXXX 20XX to XX XXXX 20XX, you were employed as a XXX at school A.

Your employer is Employer A.

Employer A offers employees the chance to travel abroad for 'Professional Renewal Leave' (PRL).

You must apply for the PRL, and it is granted to XX employees annually.

The PRL program is part of the ongoing personal formation and professional development of XXX and the leadership team which recognises service to Employer A.

The purpose of the program is to provide XXX and leadership team members, with a period of time for "reflection, renewal and development", aiming to foster capacities that will create and sustain vibrant and dynamic faith and learning communities.

The PRL must have clear linkages to the eligible employee's professional performance and development plan.

You have to negotiate and have the program approved by the director of schools.

You receive your normal salary for the duration of professional renewal leave for a period of up to XX weeks.

You received a $XX taxable allowance towards qualifying expenses from Employer A.

You are not eligible for reimbursement of travel expenses incurred while on PRL.

You were granted the PRL, and you were approved the allowance to travel to Country A to complete a pilgrimage walk.

The pilgrimage is a 6 week walk through the north of Country A with a primary focus on Religious history and spirituality.

Your passport is stamped in each town as proof of completion of the pilgrimage. This is checked by Pilgrim's Office staff. Required as proof to your employer of completion of approved activity.

On XX XXXX 20XX, you booked and paid the flights and accommodation with a travel agent.

On XX XXXX 20XX, you flew to Country A with a travel companion.

Your travel companion paid for their own expenses.

While you were still under the employment of school A, you completed the pilgrimage walk.

All food and entry fees were paid on the day.

For a couple of days after concluding the pilgrimage, you took time to rest.

On XX XXXX 20XX, you returned to Australia.

Your total costs incurred for the trip were $XX, which included airfares, accommodation, food and costs of entry to various Religious buildings.

On XX XXXX 20XX, Employer A paid the travel allowance of $XX in your income statement.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1