Airport lounge membership fees are tax deductible for employer

Employers can claim a tax deduction for airport lounge membership annual fees

The ATO’s Taxation Determination TD 2016/15 dated 27 July 2016, confirms that employers can claim a tax deduction (under s 8-1 Income Tax Assessment Act 1997) for airport lounge membership annual fees. This is for their employees.

What about if the lounge membership is used for private use? The ATO states that this is acceptable. The Determination confirms that the annual fees are fully deductible even if there is substantial private use of the lounge by the employee.

The upshot, you can let your employees enjoy their holidays.

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Dr Brett Davies, CTA, AIAMA, BJuris, LLB, Dip Ed, BArts(Hons), LLM, MBA, SJD
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