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Edited version of private advice
Authorisation Number: 1052095869079
Date of advice: 14 March 2023
Ruling
Subject: Reimbursement
Question 1
Is the income you received from Skilled Medical for the reimbursement of your petrol costs assessable income?
Answer
No.
Question 2
Are your petrol expenses you incurred an allowable deduction?
Answer
No.
Question 3
Is the income you received from Skilled Medical towards your accommodation expenses assessable income?
Answer
No.
Question 4
Are your accommodation expenses (up to the accommodation cap) an allowable deduction?
Answer
No.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
You live in City A. with your family.
You undertake positions in City B on an adhoc basis, less than 200km return from City A.
You enter in a contract with Company A, a recruitment agency, for each position.
You generally travelled alone with the exception of a specified number of contracts where your family accompanied you.
When you were accompanied by your family, you:
• Did not stay in your usual accommodation; and
• Were paid an amount towards to your accommodation cost.
When your family did not accompany you, the accommodation was booked for and paid for on your behalf.
You paid for the petrol for your travel and you were reimbursed for this cost.
You provided us with your travel diary for the 20XX-XX financial year.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 6-5
Income Tax Assessment Act 1997 section 8-1
Reasons for decision
Reimbursement
The ITAA 1997 does not provide a definition of 'reimbursement' therefore, the ordinary meaning of the word applies. The Macquarie dictionary defines the word 'reimburse' as a repayment for expense or loss incurred, or a refund.
The ordinary meaning of the word 'reimburse' implies that the recipient is to be compensated exactly for an expense already incurred although not necessarily disbursed.
Assessable Income and Deduction
If a reimbursement is received, the amount is not required to be included in assessable income and the deduction is not allowable for the related expenses.
Application to your situation
In your case, as the petrol and accommodation income are considered to be a reimbursement therefore the income is not required to be included in your assessable income and the expense related to the income is not an allowable deduction.