The golden rules for claiming deductions relating to a seminar, conference or training course are:
You must have spent the money yourself and not be reimbursed. If your employer reimburses you for any of these expenses, you cannot claim them as deductions.
You must have a record to prove it. This includes tickets, invoices, receipts, and a diary or logbook (if it is more than 6 days) detailing the purpose of the travel and expenses incurred.
You can only claim the work‑related portion of the expenses.
The seminar, conference or training course will maintain or increase the knowledge, or skills you need to earn your income in your current employment
The costs you can claim include:
fares to attend the venue where the seminar, conference or training course is held (e.g. taking a flight, driving your car, catching a train, taxi, or bus)
registration costs for the event
accommodation and meals (if you need to travel and stay away from home overnight to attend the event)
the cost of an incidental component of attending the event e.g. a catered lunch for the participants, or a reception for delegates.
Stationery and office supplies such as notebooks, pens, or other supplies for the conference
Professional books and journals or other reference materials you purchase specifically for the conference
If you use your phone or the internet for work-related purposes during the conference, you can claim a portion of these costs
Examples of Non-Deductible Expenses
Personal Expenses: Costs unrelated to your work, such as leisure activities or sightseeing, are not deductible.
Family Expenses: If you bring family members along, their expenses are not deductible.
Attending an event to change careers.
Records
You need to have records to prove you attended the event. This is things like tickets, invoices and receipts. If you travel away from home for 6 or more nights in a row, you need to keep travel diary as well as keeping receipts. It can be paper or electronic and must show your travel movements and activities including the date, location, what you were doing and the start and end time for the activities.
Apportioning
If your expenses are partly private in nature you must apportion your expenses.
Here are some helpful examples about apportioning expenses from the ATO.
Example 1 You take your partner or children away with you when you travel for work. You cannot claim the cost of any travel expenses you incur for them. For example, you pay for a two-bedroom apartment to accommodate your children, but you can only claim a deduction for the cost you would have incurred on a one-bedroom apartment had you travelled alone.
Example 2 You fly to Perth for a seven-day work conference and add on a return trip to Broome for four days. You can only claim: your flights to and from Perth and the accommodation, meals, and incidental expenses that you incurred during the seven days of work-related travel.
Example 3 You are in the process of booking a holiday to Sydney to see an art exhibition when your employer asks if you’d like to attend a three-day work-related conference in Sydney. Coincidently, this is to be held from the Monday following your planned holiday. You change your travel arrangements to include the additional time in Sydney. In total, you spend three days in Sydney for private purposes followed by three days at the conference. You apportion your flights for the private component of your trip (50%) and only claim the accommodation, meals, and incidental expenses you incur during the three days of work-related travel.
Example 4 You fly to London for a 10-day international, work-related conference. You stay over for an extra two days to do some sightseeing. You cannot claim the cost of accommodation and meals for your two days of private travel. But the private component of the trip is merely incidental, so you can claim the full cost of your airfares.
Example 5 You are holidaying in Cairns when you become aware of a work-related seminar which runs for half a day. You can claim the cost of attending the seminar, but you cannot claim your airfares to and from Cairns, or accommodation whilst in Cairns, as the primary purpose of the travel is private.
As always, if you have any questions about tax deductions feel free to speak to us here at Sheridans.
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