QANTAS club membership as a business expense? | Australian Frequent Flyer
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QANTAS club membership as a business expense?

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Bay Tram

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May 8, 2006
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Goodpeople,

I have begun a position in which I expect to be travelling by air on a periodic basis. I was thinking that if I am going to be flying several times a year then I might join the QANTAS club. I believe that membership fees can be treated as a legitimate business expense for tax purposes. Does anybody have any experience in doing this? Are there any other tax implications of purchasing QANTAS club membership for use with work-related travel?

Thanks in advance
 

one9

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Check with your accountant. I think for Qantas club, you can not simply claim it as an expense. You need to claim it as an asset, and then you can claim depreciation expense of 10% each year.
 

serfty

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one9 said:
Check with your accountant. I think for Qantas club, you can not simply claim it as an expense. You need to claim it as an asset, and then you can claim depreciation expense of 10% each year.
I think that relates to LT QP membership.

I believe annual membership is fully tax deductable over 1 year; two year @ 50% PA.
 

one9

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sorry, yes i misread the post.

I believe Serfty is correct - annual membership is fully tax deductable.
 

markis10

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The ATO made a determination for business's that allowed them to claim the mebership in full as a deduction.
As an individual I would imagine if you can prove the same reasons you should be entitled to a deduction but of course please seek professional advice, the ATO regards an airline lounge as designed primarily for business.

http://law.ato.gov.au/atolaw/view.htm?rank=find&criteria=AND~lounge~basic~exact&target=JA&style=java&sdocid=AID/AID2002957/00001&recStart=1&recnum=1&tot=66&pn=J~ZD~ZE~G~FI~RDB~ZG:::RDB~G~J~ZD~ZE~FI~ZG
 

NM

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I also believe there is no FBT liability if your company pays the membership on your behalf. Check and see if they will permit you to Salary Sacrifice the membership, hence making it a pre-tax expense.
 

Groundfeeder

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Been claiming QC membership for years on the basis of "accessing a remote office for business meetings" where one does not have an existing office.

Worked so far ... now it's public I'll have to change my name...
 

Maca44

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When I joined as LT QP it was in the vicinity of $950, but that was also because QF had a promotion going that if you were LT Golden Wings then they offered that price. I wrote off the LT QP membership in tax over a couple of years with the advantage of not having to worry about it again.

So, if you can afford the LT (and don't think you will be travelling enough to reach LT Gold where you get QP access) I would consider the LT. Others might disagree, but if your situation changes and you don't fly quite as often you still have the benefit of club access, plus the tax deduction.
 

Groundfeeder

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Bay Tram

I'm hoping that I haven't detected a sniff of ATO dobermans with this posting and you haven't been having a lend of us.

Perhaps you may introduce yourself formally.
 

acampbel

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Oct 31, 2005
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Of course it's deductible

My work pays for QC membership for those of us who travel regularly, but I declined to join their corporate scheme because I get a better deal than them and don't want to lose it. I then asked them to reimburse me the cost. It seemed quite reasonable as it was $99 vs the $260 that they pay, but they got their nose out of joint and refused.

So I just put it on my tax return each year and the government and I pay $50 each.


Cheers,

AC
 

Bay Tram

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Groundfeeder said:
I'm hoping that I haven't detected a sniff of ATO dobermans with this posting and you haven't been having a lend of us.

Perhaps you may introduce yourself formally.
Not at all Groundfeeder, my enquiry was fair dinkum. I live in Adelaide and work in Adelaide, I am a research engineer. However I recently took a new job and my employer is based in Melbourne. I will be required to travel periodically to Melbourne for this reason (in fact I was there last week) and probably occasionally O/S as well. I expect to be travelling frequently enough to make Qantas club membership worthwhile, and since almost all of my travel will be for employment reasons, I figure the membership fees should qualify as a "reasonable expense" for tax purposes. Hence my original post.

There is no need for alarm!
 

Aray

Junior Member
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Jan 13, 2009
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Hi All ..

Dont mind me digging up an old thread - but saves starting a new one ..

I paid for 4 years QC membership last year (was a special offer after the expiry of Gold after many years) .. out of my own pocket.

I do not own my own business but I do still travel occasionally for work - and it does form the majority of my flying with QF (say 80%)

So am I able to claim it on this years return ? And the full amount or should it be 25% P/A over the 4 years of the membership ?

I am especially concerned about the fact I dont own my own business but rather employed by a fairly large firm - though the QC membership was paid for by myself.
 
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serfty

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I believe this has not changed (Imagine all those Canberra based PS's horror if it had :shock:).

However, IANAA, you should generally try to get some basic advice from a professional.
 

Flashback

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I believe this has not changed (Imagine all those Canberra based PS's horror if it had :shock:).

However, IANAA, you should generally try to get some basic advice from a professional.
And given it is only 80% non-personal use, the rate of depreciation that is used should also reflect 80% of the figure.
 
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