Income Tax Assessment Act 1997

CHAPTER 5 - ADMINISTRATION  

PART 5-30 - RECORD-KEEPING AND OTHER OBLIGATIONS  

Division 900 - Substantiation rules  

Subdivision 900-B - Substantiating work expenses  

SECTION 900-30   Meaning of work expense  
General

900-30(1)    
A work expense is a loss or outgoing you incur in producing your salary or wages.

Note:

This Division also applies to withholding payments that are not salary or wages: see subsection 900-12(3) .

Travel allowance expenses included

900-30(2)    
Travel allowance expenses count as *work expenses. A travel allowance expense is a loss or outgoing you incur for travel that is covered by a *travel allowance. The loss or outgoing must:

(a)    be for accommodation or for food or drink; or

(b)    be incidental to the travel.

900-30(3)    
A travel allowance is an allowance your employer pays or is to pay to you to cover losses or outgoings:

(a)    that you incur for travel away from your ordinary residence that you undertake in the course of your duties as an employee; and

(b)    that are losses or outgoings for accommodation or for food or drink, or are incidental to the travel.

The travel may be within or outside Australia.

Note:

This Division also applies to individuals who are not employees: see section 900-12 .

Meal allowance expenses included

900-30(4)    
Meal allowance expenses count as *work expenses. A meal allowance expense is a loss or outgoing that you incur for food or drink that is covered by a *meal allowance.

900-30(5)    
A meal allowance is an allowance that your employer pays or is to pay to you as an employee to enable you to buy food or drink.

However, an allowance is not a meal allowance if it is a *travel allowance or part of one.

Note:

This Division also applies to individuals who are not employees: see section 900-12 .

Motor vehicle expenses excluded

900-30(6)    
A loss or outgoing to do with a *motor vehicle is not treated as a *work expense unless it is:

(a)    a loss or outgoing incurred, or a payment made, in respect of travel outside Australia; or

(b)    a taxi fare or similar loss or outgoing.

However, most losses or outgoings to do with a *motor vehicle are covered by the rules about *car expenses. See Division 28 and Subdivision 900-C .

Other types of losses or outgoings included

900-30(7)    
In addition to losses or outgoings within the general scope of subsection (1) , any of the following is a *work expense:

(a)    

the decline in value of property you own and that is used, or is *installed ready for use, by you in order to produce your salary or wages;

(b)    

expenditure you incur that qualifies as a deduction under section 25-60 (Parliament election expenses) or section 25-65 (about local government election expenses);

(c)    

expenditure you incur that entitles you to a deduction under section 25-100 (transport expenses incurred in your travel between workplaces), other than *car expenses;

(d)    

a loss or outgoing you incur in relation to producing your salary or wages that entitles you to a deduction under section 25-125 (COVID-19 tests).

Note 1:

This Division also applies to payments that are not salary or wages, but are PAYE earnings: see section 900-12 .

Note 2:

In certain circumstances (for example, under a hire purchase agreement) the notional buyer of property is taken to be its owner (see subsection 240-20(2) ).

Note 3:

See Subdivision 900-C for car expenses that are also transport expenses incurred in your travel between workplaces.