Airport Lounge Memberships

The primary function of Airport Lounge Clubs is to provide airline travellers with business facilities, food, drink and a relaxing environment. Business facilities provided include meeting rooms, workstations, internet access, photocopying, faxing, telephone calls, and personal messaging services.

Airport lounge clubs may be used on business travel, private travel, or for a combination of the two. Airport lounge memberships used exclusively for private travel are non- deductible.

In ATO ID 2002/957 the ATO advised that airport lounge memberships will be tax deductible to an employer where they are provided to employees travelling on business. This is because the airport lounge clubs increase employee productivity by allowing employees to either do work at the airport lounges, or relax so arriving more refreshed from their business travel.

In addition, employees will also be entitled to a personal tax deduction for their total membership fee where they use their airport lounge membership predominantly for business travel. Predominantly is not specifically defined by the ATO but generally means greater than 50%.

In contrast if the employee uses their airport lounge membership equally for personal and business travel then only 50% of the membership fee is tax deductible.