Private ruling: Home to work travel
Published: July 2012
Ruling period: Year ended 30 June 2012
Date scheme commenced: 1 July 2011

Ruling: Q1: Are you entitled to a deduction for travel between home and 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 deals with general deductions and allows a deduction for all losses or outgoings to the extent to which they are incurred in gaining or producing assessable income, except to the extent that they are outgoings of a capital, private or domestic nature. Generally a deduction is not allowable for the cost of travel between home and work as it is considered a private expense. The essential purpose of such travel is not to enable a person to derive assessable income. However, a deduction for travel expenses between home and work may be allowed if a persons job is itinerant. Taxation Ruling TR 95/34 discusses the characteristics of itinerancy. Indicators of itinerancy include: · travel is a fundamental part of the employees work · the existence of a web of work places in the employees regular employment · the employee continually travels from one work site to another · the employee has to carry bulky equipment from home to different work sites · the employee has a degree of uncertainty of location in employment. In your case, you travel from home to a number of different worksites during the day before returning home. It is considered that this work is itinerant. As such, you are entitled to a deduction for travel to and from work and between work sites.

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. | You work one day per week. | You travel from your home to the first job and then between a number of sites during the day before returning home.