Private ruling: Work Related expenses
Date of advice: 23 December 2019
Published: March 2020
Ruling period: Year ended 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Are you entitled to a deduction for travel, accommodation and meal expenses that you incurred whilst required by your employer to work away for periods at a time? | A1: Yes Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) allows a deduction for a loss or an outgoing to the extent to which it is incurred in gaining or producing assessable income, except where the loss or outgoing is of a capital, private or domestic nature. As a general rule, the cost of accommodation, meals and travel to work are not tax deductible, as they are essentially a living expense which is considered to be a private or domestic outgoing. However you circumstances can be distinguished as it was a requirement of your employer to work away and these costs were incurred in the performance of gaining or producing your assessable income. The commissioner considers the cost of accommodation, travel and meals in your specific situation an allowable deduction under section 8-1 of the ITAA 1997. Ensure the expenses are reasonably apportioned if the expense is of both a work related and private in nature expense.

Relevant facts and circumstances: You are employed. You work five to six days per week. From February to March 20XX your employer required you to be away from your usual place of employment for work related activities. You returned home on the days you were not required to work. You paid accommodation, travel and meal expenses during this period. You were not paid an allowance by your employer and you were not reimbursed for your expenses.

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