Private ruling: Travel expenses
Date of advice: 21 January 2019
Published: May 2019
Ruling period: Year ending 30 June 2019 | Year ending 30 June 2020 | Year ending 30 June 2021 | Year ending 30 June 2022

Ruling: Q1: Are you entitled to a deduction for airfares, accommodation and meal expenses you pay for when travelling to and from City B in relation to work? | A1: Yes, where you meet the substantiation requirements. Travel is a fundamental part of your employment because the nature of the job itself makes travelling a necessary element of your duties. As per Draft Taxation Ruling TR 2017/D6, you have co-existing work locations and it is accepted that your travel to and from City B is undertaken in performing your work activities because you are requir ed to work both in City A and City B.


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


Relevant facts: You are employed in City A, where you live with your family. As part of your current role you travel both within Australia and internationally to fulfil your employment obligations. Your work travel is currently paid for by your employer. | You have received a promotion, with your new employment contract stating that the position is based in City A. The promotion will require you to regularly travel between City A and City B, City C, City D, City E and City F. At times you may also be required to work at other Australian and overseas locations. You and your family intend to continue to reside in City A, and you will be working there unless specifically required by your employer at alternate premises. | The new employment agreement specifies that a minimum of XX% of your working time will be spent at your employer’s City A premises. You anticipate the number of days spent in City A to be greater than the minimum of XX%. | Your employer will continue to pay your travel costs, except for travel between City A and City B. | To help compensate for the additional costs your salary will increase from $XXX,XXX to $XXX,XXX. | Your employer has increased your salary to compensate for your travel to City B instead of paying for these costs to allow you the flexibility to make your own transport and accommodation arrangements for these trips.