| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your written advice
Authorisation Number: 1012662739244
Ruling
Subject: WRE - accommodation expenses
Question
Are you entitled to a deduction for accommodation?
Answer
Yes
This ruling applies for the following period:
Year ended 30 June 2014
The scheme commences on:
1 July 2013
Relevant facts and circumstances
You live in X.
You were required to work in Y, and stayed in short term accommodation whilst there.
You incurred accommodation expenditure in Y.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1.
Reasons for decision
Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) allows a deduction for all losses and outgoings to the extent to which they are incurred in carrying on a business. However, no deduction is allowed for expenses to the extent to which they are of a capital, private or domestic nature.
Generally, accommodation and meal expenses are not allowable as a deduction under section 8-1 of the ITAA on the basis there isn't a sufficient connection between the expenditure and the income earning activities of a taxpayer.
However, there is, no general proposition that meal expenses can never be deductible, FC of T v. Cooper 91 ATC 4396; (1991) ATR 1616. Therefore the deductibility of expenditure of accommodation and meals will depend on the essential character of the expenditure on the basis of the facts of each case.
In this case, the accommodation expenses are considered to be incurred in the course of your employment, as a condition of the scholarship you received. The expenses are not considered to be private in nature.
As a result, the accommodation expenses you incurred while travelling in the course of your employment are deductible under section 8-1 of the ITAA 1997.