Private ruling: WRE - accommodation expenses
Published: July 2014
Ruling period: Year ended 30 June 2014
Date scheme commenced: 1 July 2013

Ruling: Q1: Are you entitled to a deduction for accommodation? | A1: Yes

Relevant facts and circumstances: You live in X. You were required to work in Y, and stayed in short term accommodation whilst there. You incurred accommodation expenditure in Y.

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

Reasons for decision: Summary: 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 carrying on a business. However, no deduction is allowed for expenses to the extent to which they are of a capital, private or domestic nature. Generally, accommodation and meal expenses are not allowable as a deduction under section 8-1 of the ITAA on the basis there isn't a sufficient connection between the expenditure and the income earning activities of a taxpayer. However, there is, no general proposition that meal expenses can never be deductible, FC of T v. Cooper 91 ATC 4396; (1991) ATR 1616. Therefore the deductibility of expenditure of accommodation and meals will depend on the essential character of the expenditure on the basis of the facts of each case. In this case, the accommodation expenses are considered to be incurred in the course of your employment, as a condition of the scholarship you received. The expenses are not considered to be private in nature. As a result, the accommodation expenses you incurred while travelling in the course of your employment are deductible under section 8-1 of the ITAA 1997.