Private ruling: Work related expenses
Date of advice: 21 December 2017
Published: June 2018
Ruling period: Year ending 30 June 2017 | Year ending 30 June 2018
Date scheme commenced: 1 July 2016

Ruling: Q1: Are you entitled to a deduction for expenses incurred for a co-working space as a work related expense? | A1: Yes. 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. Expenses incurred by a taxpayer for the purpose of deriving assessable income are deductible. A co-working space involves a shared workplace where unlike in a typical office, those co-working are usually not employed by the same organization and are invoiced for access to the co-working space facilities and services. Simular to a home office expense, these expenses are deductible as there is a direct connection to the deriving of your assessable income and these expenses.

Relevant facts and circumstances: You moved from xxxx to xxxx. You approached your employer to resign however were offered to continue working for the company, remotely. Conditions from your employer were that: ● You would return to the main office once a month at your own expense. ● Office space and relocation costs were also at your own expense. You have paid a fee to access a co-working space. This monthly fee is an amount. You have also adhered to the requirement to return to the main office at your own expense.

Relevant legislative provisions: Income T ax Assessment Act 1997 section 8-1