A businessman walks into a (airport lounge) bar…can he deduct that?
No, this isn’t a riddle and the answer is yes. Generally speaking, an airport lounge club membership can be claimed as a tax deduction.
What does the ATO have to say about this?
Funny you should ask. According to the ATO, “The primary function of Airport Lounge Clubs is to provide business facilities and prompt and efficient services relating to the travel of their members.”
Now, you may be thinking the initial thought that also popped into my mind…what about the complimentary hors d’oeuvres and bottomless mimosas served to loungers? Don’t worry. It’s no huge secret and the ATO does in fact know what occurs. However, they simply state that this hospitality is ‘merely incidental to the primary function’ of the clubs’ business.
Can the entire membership be deducted?
Taking a flight is not exclusive to business travelers — however, it is essential to certain businesses. That being said, you can most certainly use your Qantas or Virgin memberships when you’re vacationing with friends or family too. With that in mind, you should be separating business use from personal, and only deducting the business percentage on your tax return. Read the rest of this entry »