Edited version of your written advice

Authorisation Number: 1051336447761

Date of advice: 27 February 2018

Ruling

Subject: Work related expenses - Travel

Question

Will the travel expenses be classified as an allowable deduction under section 8-1 of the Income Tax assessment Act 1997?

Answer

Yes

Having considered your circumstances and the relevant factors, you have established you have co-existing work locations and are subject to the direction and control of your employer for the period of your travel. You are required to travel with overnight stays away from home on an ongoing basis to an alternative work location.

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, or relate to the earning of exempt income.

Co-existing work locations are identified in Taxation Ruling TR 2017/D6 they are attributed to the employee having to work in more than one location. This is the case where:

• the travel is directly between work locations, or between home and an alternative work location, and

• it is reasonable to conclude that the travel is undertaken in performing the employee’s work activities because of the requirement to work in more than one location.

This ruling applies for the following periods:

Year ending 30 June 2018

Year ending 30 June 2019

Year ending 30 June 2020

Year ending 30 June 2021

The scheme commences on:

1 July 2017

Relevant facts and circumstances

This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.

You started as an employee.

Your contract requires you to work on average 152 hours in a four week cycle (excluding meal breaks). You are required to be flexible, when you work these hours, within the hours of operation of the business in which you work. You are expected that you will work such additional hours as are necessary to meet the needs of the business. You do not have set hours.

You have two workplace locations. Periodically you workplace could include a third location.

You have a residential address.

In your role you are required to travel three days per week to location A from the commencement of your role. The remaining workdays are to be located near your residential address. After the initial four weeks, travel to location A is required each fortnight and for a period of three days.

You are paid for the time of travel that occurs as part of your normal 7.6 hour day. When you arrive in location A at approximately 10 -11am you would be paid for two – three of hours of travelling as part of your 7.6 hour day. A general representation of your travel is commencing from your home location at a variety of hours it could be averaged to 7am arriving in location A at a variety of timings on average at 9:30am.

During your period of travel you write up notes from meetings with clients, schedule follow up meetings, update your travel plans as required and answering queries via Skype.

You are not in receipt of any formal allowances.

You have been provided two cab charges in case needed when a flight is late and public transport is considered dangerous.

You have no plans to move to location A.

The expenses you expect to claim are:

● Return Airfares

● Return Train fares,

● Accommodation costs for two nights, and

● Meals.

Relevant legislative provisions

Income Tax Assessment Act 1997 Section 8-1.

Income Tax Assessment Act 1997 Section 12-5.