Private ruling: Travel expenses
Published: September 2012
Ruling period: Year ended 30 June 2012
Date scheme commenced: 1 July 2011

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



Reasons for decision: Summary: Section 8-1 of the Income Tax Assessment Act 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. Certain expenditure is incurred in order to be in a position to be able to derive assessable income, for example unless one arrives at work it is not possible to derive income. This does not mean that the expenditure is incurred in the course of gaining or producing assessable income. Rather, the expenses are incurred to enable the taxpayer to commence income earning activities ( Lunney & Hayley v. Federal Commissioner of Taxation (1958) 100 CLR 478; (1958) 11 ATD 404; (1958) 7 AITR 166). Taxation Ruling IT 2481 provides that where you voluntarily transfer employment and incur expenditure in moving or relocating from one place of residence to another, that expenditure is not deductible. In these circumstances, you are not travelling for your work, rather you are travelling to your work. You are not entitled to a deduction for the expenses relating to your travel from overseas to Australia and your travel within Australia. These expenses are incurred to enable you to move from one place to another to commence work at different locations. The expenses are therefore private in nature and not 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 have travelled from overseas to Australia. | While in Australia you worked at a number of different locations. | At each location you were required to use air travel to enable you to start work. | You have incurred travel expenses relating to these trips. | You have provided copies of your travel description and transaction history. | Relevant legislative provision: Income Tax Assessment Act 1997 Section 8-1.