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  • Removal and relocation

    Removal and relocation expenses are those costs you incur to transfer or relocate for a work purpose. You can't claim a deduction for removal or relocation costs. Even if relocating is a condition of your employment when you take up:

    • a transfer in an existing employment
    • new employment with a different employer.

    Removal and relocation expenses never have a sufficient connection to earning your employment income or income producing activities. You incur these expenses to start earning employment income so they are private or domestic expenses.

    If you receive an allowance from your employer to cover some of the costs of relocating, you must declare the allowance as assessable income in your tax return.

    Last modified: 09 Jun 2022QC 49859