# Tax: away from home allowance ?



## letmethehellin (Nov 6, 2016)

Having a discussion with a friend who had to drive a pax over an hour away from his house late at night, said he almost fell asleep driving back home so I suggested to him that he just stays the night in a motel and claims it on tax..

Realised i just assumed he could do that, and couldn't back it by facts. 

in our industry can we do that? or does it not apply?


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## Jack Malarkey (Jan 11, 2016)

I believe that this kind of overnight expense would be deductible under the general deduction provision (section 8-1 of the Income Tax Assessment Act 1997) as a travelling expense incurred in carrying on a business for the purpose of gaining or producing assessable income. Both the accommodation cost and associated meals would be deductible.

The Australian Taxation Office's ride-sourcing guidelines don't touch on this specific issue, and it's possible the ATO would take a different view from mine but I would pursue the claim if I were in that position.


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## CoolAnt (Feb 2, 2017)

I think it is absolutely reasonable to claim this on tax but you should know that you'd be running at a loss.


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## Lowestformofwit (Sep 2, 2016)

Try this:
https://www.ato.gov.au/Individuals/...ommodation-expenses-when-travelling-for-work/


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## RexDaddy71 (Sep 20, 2016)

Lowestformofwit said:


> Try this:
> https://www.ato.gov.au/Individuals/...ommodation-expenses-when-travelling-for-work/


This for an individual, an employee who gets paid a wage. If you are set up as a company and pay yourself a wage then it could apply. This is not applicable to business related expenses.

My understanding is that accommodation is claimable if you are over a particular distance from home and your personal meals are not. Buying food for a business event (meeting, conference, presentation, etc.) is claimable.

**TALK TO AN ACCOUNTANT**


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## Lowestformofwit (Sep 2, 2016)

RexDaddy71 said:


> This for an individual, an employee who gets paid a wage. If you are set up as a company and pay yourself a wage then it could apply. This is not applicable to business related expenses.
> 
> My understanding is that accommodation is claimable if you are over a particular distance from home and your personal meals are not. Buying food for a business event (meeting, conference, presentation, etc.) is claimable.
> 
> **TALK TO AN ACCOUNTANT**


In the interim, try this one then: 
https://www.ato.gov.au/Business/Inc...-expenses/Overnight-business-travel-expenses/


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## Dieudonnee (Jan 12, 2017)

letmethefuqin said:


> Having a discussion with a friend who had to drive a pax over an hour away from his house late at night, said he almost fell asleep driving back home so I suggested to him that he just stays the night in a motel and claims it on tax..
> 
> Realised i just assumed he could do that, and couldn't back it by facts.
> 
> in our industry can we do that? or does it not apply?


Sure.
Good one.


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## Lowestformofwit (Sep 2, 2016)

Dieudonnee said:


> Sure.
> Good one.


No, true!
The female pax was a witch, who claimed to have the power of transfiguration.
To prove it, she touched him on the inner thigh - and he turned into a motel.


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## Dieudonnee (Jan 12, 2017)

Lowestformofwit said:


> No, true!
> The female pax was a witch, who claimed to have the power of transfiguration.
> To prove it, she touched him on the inner thigh - and he turned into a motel.


Ha, ha, ha. I think that is very true and very funny. 
And many I know, very likely.


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