Private ruling: Home to work travel
Published: February 2015
Ruling period: Year ending 30 June 2015
Date scheme commenced: 1 July 2014

Ruling: Q1: Are you entitled to a deduction for home to work travel expenses for the year ending 30 June 2015? | A1: Yes.

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. You are required legally and by your employer to carry a number of items. Your employer does not provide a secure storage area. You transport the items in your own car between your home and work and incur expenses relating to this travel.

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. A deduction is generally not allowable for the cost of travel between home and work because the expenses are not considered to be incurred in producing assessable income. These expenses are incurred as a consequence of living in one place and working in another and any expenses incurred to enable a taxpayer to commence their income earning activities are therefore considered private in nature. Taxation Ruling TR 95/19 discusses deductions for airline employees and states that a deduction is not allowable for the cost of travel including tolls incurred when airline employees are travelling between their home and their normal place of employment. The cost of that travel is a private expense and the tolls therefore have the same private character. However, there are situations where it has been accepted that travel by employees from home to work is deductible. These situations include: • where the employment can be construed as having commenced at the time of leaving home, for example a doctor on call • where you travel between home and shifting places of work, that is, an itinerant occupation • the transportation of bulky equipment in some circumstances. We consider that you fit into one of these situations. Therefore you are entitled to a deduction for home to work travel for the financial year ending 30 June 2015.