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Is travel on a sabbitical trip tax deductible

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I am a university lecturer and last year i went on a sabbitical. I stayed overseas for 6 months all whille on sabbitical. I received a small sum of money $20000 from an overseas university towards my accomodation/food and travel expenses however my actual spend was close to $50,000.

I have all receipts and documents to prove these expenses. 

I have also received a small sum of $10,000 from my employer (university) in Australia.

My questions

1) Can i claim my overseas trave, food, accomodation expenditure?

2) Can i claim using the ATO reasonable rates for the specific countries even if this is more than what i actually spent?

3)Where do i show my allowance that was received from this overseas university in my tax return? Or do i just reduce my travel expenses by this amount and claim the difference?

Thank you 

 

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Devotee

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Not an allowance unless its on your payslip as an allowance.

 

If its not an allowance, you cannot use reasonable rates.

 

The tax treatment on the 20k and 10k depends on the actual arrangement as to why you are receiving the amounts. There are generally 3 cases (very broadly speaking here):

1. You receive the funds as a income/as a "bonus" - thus assessable and expenditure non-deductible.

2. You receive the funds in exchange for something whilst on sabattical (eg. learning xyz etc.) - thus assessable and expenditure to be apportioned between deductible (expended in connection with earning that income) and non-deductible.

3. You receive the funds effectively as a "reimbursement" of costs in exchange for learning xyz, gaining certain skills to take back, undertaking courses etc. In this case, the amount of the reimbursement is not assessable in your name and the expenditure is essentially treated to "wash" the amont received. The net position for you in respect of the amount is nil (inflow = outflow) and any private expenditure is again, non-deductible.

 

 

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Most helpful response

Devotee

Replies 2

Not an allowance unless its on your payslip as an allowance.

 

If its not an allowance, you cannot use reasonable rates.

 

The tax treatment on the 20k and 10k depends on the actual arrangement as to why you are receiving the amounts. There are generally 3 cases (very broadly speaking here):

1. You receive the funds as a income/as a "bonus" - thus assessable and expenditure non-deductible.

2. You receive the funds in exchange for something whilst on sabattical (eg. learning xyz etc.) - thus assessable and expenditure to be apportioned between deductible (expended in connection with earning that income) and non-deductible.

3. You receive the funds effectively as a "reimbursement" of costs in exchange for learning xyz, gaining certain skills to take back, undertaking courses etc. In this case, the amount of the reimbursement is not assessable in your name and the expenditure is essentially treated to "wash" the amont received. The net position for you in respect of the amount is nil (inflow = outflow) and any private expenditure is again, non-deductible.

 

 

Devotee

Replies 1

Just to add to @TaxedoMask's answer, the deductibility of your costs depends largely on the purpose of the trip. If it's a holiday and you happened to visit places connected to you job it's unliely to be deductible. If it is a study tour, then you might be OK - but if you claimed $50k on your tax return for travel, I can almost guarantee an ATO audit (not to say it's not claimable, but it will raise a red flag as it is extraordinary)

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Thank you for the response.
Agree as it’s a large number it is bound to be queried. However I have all invoices etc.
Also I was looking on the ATO site to get an idea if university professors are eligible to claim a Sabbatical as a tax deduction?