CONFERENCE CLAIM  HINTS & TIPS (Check with your professional tax adviser)

When you attend a conference, do you know what travel and other expenses are tax-deductible?

Attending conferences, in order to keep up with the latest developments in your profession, is an important part of every professional's work.
Travel and associated costs can be high, however, so you must ensure you know what travel, accommodation and other expenses you can claim against your tax bill.

As a rule, deductions can be claimed for expenses incurred in earning an assessable income -- which includes attendance at professional development conferences.  Most people realise they are allowed to deduct conferences expenses to reduce their tax bill.

To claim a deduction, you must keep the receipts of all expenses incurred, to prove you did spend the money.  These receipts must contain information such as the date on which the expenses were incurred, the name of the supplier and the nature of the goods or services purchased (e.g., food or travel).  If the receipt does not have that information on it, it is alright for you to note that information on it, and if possible, get the issuer to initial it.

CONFERENCE TRAVEL
The actual cost of the conference -- that is, the registration fee -- is deductible, as are travel costs associated with getting to the conference venue.

Our tax adviser advises that if you fly to the conference, there are no restrictions governing the type of ticket you buy.  "You can choose whatever class you wish and claim the cost as a deduction," he says. 
"If you drive, you are also entitled to claim for any parking fees, tolls and the kilometric rate (mileage) -- although you cannot claim for any parking fines."

If the conference runs for several days, accommodation and reasonable food and non-alcoholic drink expenses are also tax-deductible, though this depends on where the function is being held.
The Australian Taxation Office (ATO) web site (www.ato.gov.au) publishes a list of countries and cities and reasonable claimable amounts.

If you do not receive a travel allowance, you must collect receipts for all expenses.
If you do receive a travel allowance, however, you can do away with receipts and simply claimed the reasonable amount determined by the tax office.  If you want to claim more than the reasonable allowance, you must keep the receipts.
"The amount set by the ATO is only the reasonable amount for which it feels you should be reimbursed," says our tax adviser.  If you have spent more than the ATO-defined "reasonable amount" and you have kept all receipts to prove this, you may claim the actual expenditure as you have the documentation to prove your claim.  This is a VERY important concept.

TRAVEL DIARIES
The tax office describes a travel diary as a document that shows details of activities.
The diary must show the date, place, time and duration of activities and travel.

If you decided to combine the conference with the holiday, you must apportion the travel and accommodation costs.
For example, if the trip is 50% devoted to the conference, and 50 percent holiday, you can claim only 50% of any expenses.
In addition, if you decided to take your spouse and/or children on the trip, you cannot claim their travel costs or food and beverage expenses.

Also you only be able to claim a single room rate if you have a spouse with you, even if you are in a double room. Our tax adviser added, "It is important to check whether the single room rate and the double room rate actually differ, as in many cases the accommodation cost is on a per room basis rather than a per person basis."

DIARY REQUIREMENTS (Check with your tax adviser)
There are some slight, yet important differences you should note concerning where your conference is held.

Local Conferences (ie, in Australia)
Number of nights               Travel diary requirement
Less than 6 nights:             No diary requirement (BUT, keep receipts)
6 nights or more:                 NO (if you claim the reasonable amount or less)
                                                YES (if you claim the reasonable amount or more
                                                          or if you do not receive a travel allowance and you
                                                          are claiming receipts for expenses.)

Overseas Conferences
These requirements apply in every case, whether you receive a travel allowance, deduct receipts or claim the ATO's reasonable amount.
Number of nights               Travel diary requirement
Less than 6 nights:             NO (BUT, keep receipts)
6 nights or more:                 YES (BUT, keep receipts)