Travel and Accommodation Deductions

I have been getting asked a lot of questions about travel and accomodation deductions…

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They are normally about a contractor or employee who is working away from their home far enough away they can’t just come home each night. They live in Geelong but work in Melbourne, they live in Perth and work in Darwin…

The answer to all these questions is generally found in the 18 example in draft Taxation Ruling TR 2017/D6.

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And yes, I know the heading says employees but it applies to employers through the otherwise deductible rule, and the Commissioner uses its reasoning when giving private rulings for contractors…

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Lets have a look at one of the 18 examples. This is a reminder that once you are no longer “traveling away from home for work” but a rather “living away from home for work” the accommodation become non deductible…

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By Ken Mansell

As a stay at home Dad most of the week this is my way of pretending I am still the tax counsel of ASX and SEC listed companies, working at big 4 firms, working at the Federal Treasury, on the Henry Review and at Parliament House for the previous government.

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