Private ruling: Travel expenses
Published: August 2011
Ruling period: Year ended 30 June 2011
Date scheme commenced: 1 July 2010

Ruling: Q1: Are you entitled to a deduction for travel expenses incurred travelling to and from work to transport your knives, steel and stone? | 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 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. As a general rule, expenditure travelling to and from work is not deductible 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 private in nature. However, a deduction may be allowable if the transport costs can be attributed to the transportation of bulky equipment. Taxation Ruling TR 95/11, which relates to hospitality industry employees, provides the example of a chef who takes their knives home at the end of each day. The chef is not considered to be transporting bulky equipment and is therefore not entitled to a deduction. Similarly, in your situation, your knives, steel and stone are not considered bulky. You are therefore not entitled to claim a deduction for your motor vehicle expenses incurred in transporting the knives, steel and stone to and from work. | Detailed Reasoning - Further Information: The illegality of carrying knives on public transport, and consequently requiring you to transport them in your car, is not a relevant consideration in determining the deductibility of your car expenses.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. Contact us at the address given in the fact sheet if you have any concerns. | Relevant facts: You use knives in carrying out your work duties. | You carry your knives, steel and stone to and from work daily, so that you can sharpen your knives at home. | Your employer supplies lockers to store your knives; however you prefer to take them home each night. | Your work carries out random locker inspections as well as cleaning lockers one night a month (therefore you have to have your locker empty at these times in any event). | You use your own vehicle as you cannot carry these knives on public transport.