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Edited version of private advice
Authorisation Number: 1052060714952
Date of advice: 22 November 2022
Ruling
Subject: Work-related expenses
Question 1
Are you entitled to a deduction, under section 8-1 of the Income Tax Assessment Act 1997, for the motor vehicle expenses you incur in travelling to and from Office 1?
Answer
Yes.
You are entitled to a deduction for your motor vehicle expenses under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997), as your circumstances satisfy the requirements under Taxation Ruling TR 2021/1 Income tax: when are deductions allowed for employees' travel expenses?
Question 2
Are you entitled to a deduction, under section 8-1 of the Income Tax Assessment Act 1997, for the accommodation and meal expenses you incur during your attendance at Office 1?
Answer
Yes.
You are entitled to a deduction for your accommodation and meal expenses under section 8-1 of the ITAA 1997, as your circumstances satisfy the requirements of Taxation Ruling TR 2021/4 Income tax and fringe benefits tax: employees: accommodation and food and drink expenses travel allowance and living-away-from-home allowances.
This ruling applies for the following periods:
The income year ended 30 June 20XX
The income year ending 30 June 20XX
The income year ending 30 June 20XX
The income year ending 30 June 20XX
The income year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You are employed in a senior position with your employer.
Your employer has two locations, Office 1 and Office 2 (the two locations).
The two locations are geographically distant, being XXX kilometres apart.
Your employment duties require that you work between the two locations. This includes attending meetings in person at Office 1 and overseeing the operation of the Office 1 team.
You reside in the locality of Office 2 with your family.
You are required to travel to Office 1 for meetings in most weeks of the year (your travel).
Each trip to Office 1 is approximately a X hour drive each way.
Your family members do not accompany you during your travel.
You undertake your travel alone.
Your travel occurs during business hours.
Your travel is not attributed to your choice about where to live.
You have no reason to be in the locality of Office 1 other than for work.
You stay in short term accommodation when you are required to travel to Office 1.
You explained how many trips and overnight stays you had in the locality of Office 1 in the income year ended 30 June 20XX.
Your overnight stays in the locality of Office 1 are related to work only.
You stay in the locality of Office 1 for only a short period at any one time. None of your stays exceed three consecutive nights.
You provided details of the deductions you intend to claim for motor vehicle expenses and accommodation costs, related to your travel to Office 1.
You do not receive a travel allowance or living away from home allowance from your employer.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1