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Edited version of private advice
Authorisation Number: 1051685347661
Date of advice: 22 May 2020
Ruling
Subject: Work related expenses
Question
Are my meal expenses an allowable deduction under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) when working as a fly in fly out professional if trading as a Sole Trader under an ABN?
Answer
Yes,your business can claim a deduction for meals if you are away overnight under this section. Further information about allowable business deductions can be found by searching QC 44448 on ato.gov.au
This ruling applies for the following period:
Year ending June 2020
The scheme commences on:
1 July 2019
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 are sole trader working as a professional for various health organisations.
You are a fly in fly out worker providing services at different locations.
You incur travel expenses including meals and accommodation whilst you are away on fly in fly out trips
You are not an employee of the health organisations as you are working under your ABN and running a business as a professional.
Income Tax Assessment Act 1997 section 8-1 allows for the taxpayer to deduct from their assessable income any loss or outgoing to the extent that is either:
· incurred in gaining or producing assessable income or,
· it is necessarily incurred in carrying on a business for the purpose of gaining or producing your assessable income, unless the losses or outgoings are of a capital, private or domestic nature
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1