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Can a tradesman claim accommodation as a work related deduction under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) when their workplace is not close to where they normally reside?

No, the accommodation expenses that the taxpayer incurs are not an allowable deduction under section 8-1 of the ITAA 1997.

The taxpayer is a tradesman employed in a different town to where he normally resides. The taxpayer continues to maintain his home, and incurs accommodation expenses near his workplace during the time that he works in the different town, returning to his home on the weekends.

Section 8-1 of the ITAA 1997 allows a deduction for all outgoings to the extent to which they are incurred in gaining or producing assessable income, as long as they are not of a capital, private or domestic nature, or incurred in the gaining of exempt income.

Accommodation expenses, incurred by an employee who lives away from home, to carry out the duties of his employment, at his place of employment, will not be deductible. Expenses of this nature are private, or incurred before or after the activity of earning assessable income.