Private ruling: home to work travel
Published: January 2012
Ruling period: Year ending 30 June 2012
Date scheme commenced: 1 July 2011

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

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You are employed as a police officer. You are required to have a firearm on your person at all times while on duty. There is no gun safe made available to you at your workplace. You are required to transport the gun in a locked briefcase to and from work on a daily basis. You would be unable to transport the gun on public transport for safety reasons and therefore are required to drive your personal vehicle to and from work.

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 (ITAA 1997) allows a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income except where the outgoings are of a capital, private or domestic nature, or relate to the earning of exempt income. Expenses of travelling from home to work are generally not deductible ( Lunney & Hayley v. Federal Commissioner of Taxation (1958) 100 CLR 478; 77 ATC 4076; 7 ATR 166), as the expenses are not incurred in the course of gaining assessable income. Rather, the expenses are incurred to enable the taxpayer to commence income earning activities. The travel expenses are generally considered to be private in nature. However, a deduction may be allowable if the transport costs can be attributed to the transportation of bulky equipment rather than to private travel between home and work ( FC of T v. Vogt 75 ATC 4073; 5 ATR 274). In your case, the gun you use in your employment is not considered to be bulky. Therefore, you are not entitled to claim a deduction for expenditure incurred in transporting the gun to work under section 8-1 of the ITAA 1997. The safety aspect of carrying the gun on public transport is not a relevant consideration in determining the deductibility of the expense ( Case L49 79 ATC 339; (1979) 23 CTBR (NS) Case 56 467).

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.