Private ruling: Travel expenses
Date of advice: 10 August 2015
Published: August 2015
Ruling period: Year ended 30 June 2014 | Year ended 30 June 2015 | Year ended 30 June 2016
Date scheme commenced: 1 July 2013

Ruling: Q1: Are you able to claim the costs of airport parking, toll fares, accommodation and meals whilst travelling for work as allowable deductions? | A1: Yes.

Relevant facts and circumstances: You work in city A. Your terms of employment require you to travel to different sites on an almost weekly basis. You usually stay at the various sites on average of two nights per week. All other days, you work from your employer's office in city A. Your employer pays only for your flights to and from the various sites as required and you do not receive reimbursement for any of your other costs relating to your travel.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 8-1 | Income Tax Assessment Act 1997 Division 900

Reasons for decision: Detailed Reasoning - Work-related travel expenses: An expense is deductible under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) if and to the extent to which it is incurred in gaining or producing your assessable income or in carrying on a business for that purpose. However you cannot claim a deduction for an expense that is of a capital, private or domestic nature. An expense is deductible under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) if and to the extent to which it is incurred in gaining or producing your assessable income or in carrying on a business for that purpose. However you cannot claim a deduction for an expense that is of a capital, private or domestic nature. A deduction is only allowable if an expense: • is actually incurred • meets the deductibility tests • satisfies the substantiation rules. Work-related travel expenses you incur that are directly related to your work as an employee may include: • public transport, including air travel and taxi fares • bridge and road tolls, parking fees and short-term car hire • meal, accommodation and incidental expenses you incur while away overnight for work • expenses for motorcycles and vehicles with a carrying capacity of one tonne or more, or nine or more passengers, such as utility trucks and panel vans • actual expenses (such as any petrol, oil and repair costs) you incur to travel in a car that is owned or leased by someone else | Detailed Reasoning - Substantiation: The substantiation provisions of Division 900 of the ITAA 1997 require that certain written evidence be maintained in respect of work-related expenses. If the required written evidence is not available, generally the expenses cannot be claimed as deductions. Section 900-115(2) of the ITAA 1997 states that you must get a document from the supplier of the goods or services the expense is for. The document must set out: • the name or business name of the supplier • the amount of the expense, expressed in the currency in which it was incurred • the nature of the goods or services • the day the expense was incurred • the day it is made out. A taxpayer must supply substantiation to the Commissioner when called upon to do so. If the required written evidence is not available, generally the expenses cannot be claimed as deductions. | Detailed Reasoning - Application to your circumstances: In your case, you are required to travel in the course of your employment. In doing so, you are incurring costs in relation to airport parking, toll fares, accommodation and meals. It is considered that these expenses incurred are directly related to your work as an employee and therefore, are allowable deductions under section 8-1 of the ITAA 1997.