Draft Taxation Determination

TD 92/D197

Income tax: does the receipt of a site or height allowance entitle an employee to a deduction?

  • Please note that the PDF version is the authorised version of this draft ruling.
    This document has been finalised by TD 93/49.

FOI status:

draft only - for comment

Preamble

Draft Taxation Determinations (TDs) represent the preliminary, though considered, views of the ATO. Draft TDs may not be relied on; only final TDs are authoritative statements of the ATO.

1. No. An employee is entitled under subsection 51(1) of the Income Tax Assessment Act 1936 to a deduction for expenditure incurred in gaining or producing assessable income other than expenditure of a capital, private or domestic nature. The mere receipt of an allowance does not entitle an employee to a deduction.

2. The amount of a site or height allowance is assessable income and no contra deduction is allowable.

Example:

Z received a site allowance of $1740 from his employer because of difficult working conditions and remoteness of job sites. The amount of $1740 is included in assessable income. Z is not entitled to a deduction of $1740.

Commissioner of Taxation
12/11/92

References

ATO references:
NO BAN TD 15

ISSN: 1038-8982

Related Rulings/Determinations:

IT 2543

Subject References:
allowances
deductions

Legislative References:
ITAA 51(1)

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