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Edited version of private advice
Authorisation Number: 1051623208836
Date of advice: 23 December 2019
Ruling
Subject: Work Related expenses
Question
Are you entitled to a deduction for travel, accommodation and meal expenses that you incurred whilst required by your employer to work away for periods at a time?
Answer
Yes
Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) allows a deduction for a loss or an outgoing to the extent to which it is incurred in gaining or producing assessable income, except where the loss or outgoing is of a capital, private or domestic nature.
As a general rule, the cost of accommodation, meals and travel to work are not tax deductible, as they are essentially a living expense which is considered to be a private or domestic outgoing. However you circumstances can be distinguished as it was a requirement of your employer to work away and these costs were incurred in the performance of gaining or producing your assessable income.
The commissioner considers the cost of accommodation, travel and meals in your specific situation an allowable deduction under section 8-1 of the ITAA 1997. Ensure the expenses are reasonably apportioned if the expense is of both a work related and private in nature expense.
This ruling applies for the following period:
Year ended 30 June 2019
The scheme commences on:
1 July 2018
Relevant facts and circumstances
You are employed.
You work five to six days per week.
From February to March 20XX your employer required you to be away from your usual place of employment for work related activities.
You returned home on the days you were not required to work.
You paid accommodation, travel and meal expenses during this period. You were not paid an allowance by your employer and you were not reimbursed for your expenses.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1