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

Ruling: Q1: Are you entitled to a deduction for home to work travel? | 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 (ITAA 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 the expenses of travel to and from work are not deductible. This is either because such expenditure is private in nature, or because it is not an expense incurred in gaining or producing assessable income. However, the Commissioner accepts that expenses incurred by employees in travelling to and from work are deductible in certain circumstances. One of the exceptions to the general view is where the employee is required to transport bulky equipment necessary for employment. In Crestani v. FC of T 98 ATC 2219; (1998) 40 ATR 1037 (Crestani's Case) , the taxpayer's work equipment was considered significantly bulky and cumbersome such that the transport cost was attributable to the transportation of this equipment rather than private travel between home and work. In your case, you are required to carry a laptop computer with you each day. The laptop is not of a size or weight to be considered to be either heavy or cumbersome . Therefore, as you are not carrying bulky equipment, you are not entitled to a deduction for home to work travel.

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 work approximately 40 kilometres from your home.