Interesting income tax situation

[wobbycarly]

I've been told that if you have work in a particular location of greater than 21 days then that is considered to be your 'work location' for tax purposes.

So from the way I understand it, if you were on a 3 week assignment and flew back home weekends, no problem there.

But if that was a 4 week assignment then any personal fly backs would be considered a taxable benefit. Your initial flight there and back is tax deductible though.

Ah ha!! I stand corrected! Thanks - now I understand.

 

[Mooze]

What about working away from home allowance?

 

[DavidMc]

Yes I have been told I am entitled to this.

However it's something like $150 per week or so, where the tax on a $1100 return flight is around $400...

Still better than a kick in the pants.

 

[WinstonWolfe]

Can you do any of the work at home in Melb? and cut down on flights?

 

[DavidMc]

Yes, although the client likes to see the people they pay for.

I've actually been doing it for a few months already, all of the flights and hotels do add up. Hopefully they'll accept my proposal of working from home 70% of the time.

 

[zargor1]

DavidMC,

See if your employer can pay a "Living-Away-From-Home" allowance, which has concessional FBT implications.

This may work-out better for both you and your employer as if the employer is still reimbursing the exact amount of your air-fares (as opposed to an allowance), there is possibly still FBT implications for your employer.

Zargor

DISCLAIMER

Check everything with your accountant - don't rely on what I say