Private ruling: Home to work travel
Published: September 2014
Ruling period: Year ended 30 June 2014
Date scheme commenced: 1 July 2013

Ruling: Q1: Are you entitled to a deduction for home to work travel? | A1: No.


Relevant legislative provisions: Income Tax Assessment Act 1997 Section 8-1

Reasons for decision: Summary: Section 8-1 of the Income Tax Assessment Act 1997 deals with general deductions and allows a deduction for all losses or outgoings to the extent to which they are incurred in gaining or producing assessable income, except to the extent that they are outgoings of a capital, private or domestic nature. Generally the expenses of travel to and from work are not deductible. This is either because such expenditure is private in nature, or because it is not an expense incurred in gaining or producing assessable income. The case of Lunney & Hayley v. Federal Commissioner of Taxation (1958) 100 CLR 478; (1958) 7 AITR 166; (1958) 11 ATD 404 settled the principle that travel to and from work is ordinarily not deductible. The Full High Court held that costs incurred by a taxpayer in travelling to the place where they work are expenses incurred in order to enable them to earn income but are not expenses incurred in the course of earning that income. The travel is considered to be of an essentially private or domestic nature. Whilst we recognise your particular circumstances, the distance of the travel or the reason behind needing to travel that distance to and from work do not change the character of the expense. The cost of your travel between home and work is private or domestic in nature as you are travelling to work rather than on work and, as such, you are not entitled to a deduction for the travel expenses.

Relevant facts: You are employed full time and work on a roster. | Your employer provides accommodation and meals near the work site. | You travel home on your rostered days off. | You incur expenses travelling between home and the workplace.