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

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.

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