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Edited version of your written advice
Authorisation Number: 1051322873924
Date of advice: 21 December 2017
Ruling
Subject: Work related expenses
Question
Are you entitled to a deduction for expenses incurred for a co-working space as a work related expense?
Answer
Yes.
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 gaining or producing assessable income except where the outgoings are of a capital, private or domestic nature.
Expenses incurred by a taxpayer for the purpose of deriving assessable income are deductible. A co-working space involves a shared workplace where unlike in a typical office, those co-working are usually not employed by the same organization and are invoiced for access to the co-working space facilities and services. Simular to a home office expense, these expenses are deductible as there is a direct connection to the deriving of your assessable income and these expenses.
This ruling applies for the following periods:
Year ending 30 June 2017
Year ending 30 June 2018
The scheme commences on:
1 July 2016
Relevant facts and circumstances
You moved from xxxx to xxxx.
You approached your employer to resign however were offered to continue working for the company, remotely.
Conditions from your employer were that:
● You would return to the main office once a month at your own expense.
● Office space and relocation costs were also at your own expense.
You have paid a fee to access a co-working space.
This monthly fee is an amount.
You have also adhered to the requirement to return to the main office at your own expense.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1