Private ruling: Work related travel expenses – co existing work places
Date of advice: 24 April 2018
Published: July 2018
Ruling period: 30 June 2018 to 30 June 2019
Date scheme commenced: 30 June 2017

Ruling: Q1: Can you claim a deduction under section 8-1 of the Income Tax Assessment Act 1997 for the a portion of motorcycle expenses incurred from home to your work places being various work locations. | A1: No

Relevant facts and circumstances: ● The work that is undertaken by the client is a prison/chaplain. ● They are required to travel to different work places during the week, in varied locations. ● Claims are submitted to their work place for kilometres travelled, location and distance. ● They receive a travel allowance. ● They are scheduled to work at one location on Monday and Thursday, another on Tuesday and Wednesday and a third location on Friday, on Saturday they are directed by your employer, they are notified the day before your shift.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 8-1 Income Tax Assessment Act 1997 section 25-100

Reasons for decision: Summary: Section 25-100 of the ITAA 1997 specifically states, that travel between two places is not travel between workplaces, if one of the places you are travelling between is a place at which you reside. This section denies a deduction for your travel expenses between home and your work place. Taxation Ruling IT 2543 states the mode of transport, the availability of transport, the lack of suitable public transport, the erratic hours and times of employment, the on-call nature of the employment, the time of travel, the distance of travel, the unavailability of residential accommodation near the place of work, the frequency of travel and the necessity of travel are not factors which will alter the essential character of travel between home and work. A taxpayer who has a co-existing workplace in draft Taxation Ruling 2017/D6 is entitled to a deduction from travel between work and their home. Co-existing work locations travel involves travel which can be attributed to the employee having to work in more than one location. This is the case where: the travel is directly between work locations, or between home and an alternative work location, and it is reasonable to conclude that the travel is undertaken in performing the employee's work activities because of the requirement to work in more than one location. Travel between home and work/business is not ordinarily deductible. It is not incidental and relevant to earning a taxpayer’s income and is private or domestic in nature Duties of a salary and wage earner will not commence until the arrival at a place of work and will cease upon departure from work. | Detailed Reasoning - Application to your situation: Example 2 in paragraph 104 to 109 of Draft Taxation Ruling 2017/D6 is similar to your situation. In that Raj lived on the Gold Coast and was employed in Southport but also worked at the Brisbane office three days a week for a three month period. Raj could not claim the extra travel to the Brisbane office. You are not on paid duty, and are not subject to the employer’s direction and control, for the period while you travel between home and work. The travel is not an activity you are paid to do and it is preliminary to your work. The fact you receive a travel deduction does not make the travel deductible. | Detailed Reasoning - Conclusion: In your situation, you are required to travel to set temporary locations during your working week. On Saturday you are given a location to travel too directed by your employer with notice of the Friday afternoon prior. You receive a travel allowance from your employer. You do not perform any work activities at home. Your travel from home to your place of employment is not fundamental to your work. You do not perform any work activities at home. For the entirety of your work day you are stationed at one work per day. You do not travel between work locations in your daily shift. For these reasons it is considered the expenses you incur in travelling between home and your workplace and back home are inherently of a private or domestic in nature. Your home to work travel is private in nature and you cannot claim a deduction for your travel your home to work travel is private in nature and you cannot claim a deduction for your travel expenses under section 8-1 of the ITAA 1997 .

ATO view documents: Taxation Ruling IT2543 Taxation Ruling TR 2017/D6