Private ruling: Deduction-home to work travel
Published: September 2012
Ruling period: Year ended 30 June 2012 | Year ending 30 June 2013 | Year ending 30 June 2014 | Year ending 30 June 2015 | Year ending 30 June 2016
Date scheme commenced: 1 July 2011

Ruling: Q1: Are you entitled to a deduction for motor vehicle expenses incurred whilst travelling to and from work? | A1: Yes.


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. A deduction is generally not deductible for the cost of travel by an employee between home and their normal workplace as it is considered to be a private expense. The cost of travel between home and work is generally incurred to put the employee in a position to perform duties, rather than in the performance of those duties (see Taxation Ruling TR 95/34). However, a deduction is allowable for the cost of travel between home and work for an employee who is engaged in itinerant work. TR 95/34 provides guidelines for establishing whether an employee is carrying out itinerant work. As per TR 95/34, the following characteristics have emerged from cases as being indicators of itinerancy: · travel is a fundamental part of the employee's work · the existence of a 'web' of work places in the employee's regular employment, that is, the employee has no fixed place of work · the employee continually travels from one worksite to another. An employee must regularly work at more than one worksite before returning to his or her usual place of residence, and · the employee has a degree of uncertainty of location in his or her employment (that is, no long-term plan and no regular pattern exists). It should be noted that the above characteristics are not exhaustive and no single factor on its own is necessarily decisive. The question of whether an employee's work is itinerant is one of fact, to be determined according to individual circumstances. In your case, it is considered that travel is a fundamental part of your work; you regularly attend various worksites to carry out your duties, there is no single 'workplace' which could be considered your fixed place of work. You are advised by your employer the day before as to the location you need to attend the next day. You rarely attend the same work locations or stay at a worksite for an extended period of time. Given these facts we consider there is a degree of uncertainty of location as there is no regular pattern of worksite you are required to attend. Therefore it is considered you are engaged in itinerant work and the cost of travel from home to your work locations is deductible.

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. | Relevant facts: You are employed as a casual worker. | You are engaged by your employer on a day to day basis. | You are advised by your employer the night before of the location you are required to attend the next day to carry out your duties. | You are required to travel from your home to various locations as advised by your employer. | You may spend one day or several days at a particular site. | On rare occasions you may attend one worksite for up to two weeks. | You intend to use a logbook to claim your motor vehicle expenses. | You keep documentation to substantiate your motor vehicle expenses.