EV 1052008430280currentnon-binding advice

Deduction - travel

Non-binding edited private advice. This is an edited version of private advice the ATO gave to a specific taxpayer about their own circumstances. You cannot rely on it — it is not binding and provides no protection for anyone else (see PS LA 2008/4). Use it as a guide to the ATO’s thinking, not as authority.

1

Are you entitled to a deduction under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) for the costs you incurred to voluntarily upgrade your airfares when your travel is for work-related purposes?

2

Yes. You are entitled to a deduction under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) for the costs you incurred to voluntarily upgrade your airfares when your travel is for work-related purposes. Although the upgrade expense is incurred voluntarily, it still has the necessary connection with your income earning activities to be deductible under section 8-1 of the ITAA 1997. This ruling applies for the following period : Year ending 30 June 20XX The scheme commences on: 1 July 20XX

3

You are employed as a National Marketing Manager. You are required to travel extensively for interstate and overseas work-related trips. Your employer's policy is to only pay for economy class tickets. All other travel-related costs are paid by your employer. You voluntarily pay for flight upgrades to business class for the following reasons: • You travel with a laptop and you are required to work during the flight • Business class provides you with sufficient room to work during the flight • Your work information is confidential and business class provides you with sufficient privacy.

4

Section 8-1 of the Income Tax Assessment Act 1997