Private ruling: Home to work travel expenses
Date of advice: 6 November 2018
Published: March 2019
Ruling period: Period ending 30 June 2018 | Period ending 22 rd October 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Can you claim a deduction for your home to work travel expenses? | 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 as a Pilot. You carry a navigational bag with dimensions of 56cm x 27cm x 38cm. After adding all the items detailed below that you are required to carry, it weighs 17.5kg. You are required legally and by the company to carry: ● Relevant Manual (3 manuals totalling 23cm x 21cm x 20cm) ● Reference guide ● Personal reference notebook ● iPad. ● Relevant Licence and medical ● Mobile phone ● Torch ● Noise attenuating headset and adapter ● Data cards ● Flight Crew Report/Air Safety Incident Forms ● Hearing protection ● Miscellaneous items including pens, keys, wallet, etc. ● Sunglasses When you stay away for four to five nights you use a larger suitcase (64x41x30cm and weighs 16kg). The items you carry in this bag are work shirts, work pants, work socks, work jumper, and other private items. You occasionally carry your suit bag (60x45x15cm and weighs 4.6 kg) to house your uniform jacket. It is company policy that you cannot wear uniforms when you’re not on duty. Your employer does not provide a secure storage area. You transport the bags in your own car between your home and work and incur expenses relating to this travel. From this date you are no longer required to carry your Relevant paper Manuals as your employer received approval to use the electronic copy.

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 or a provision of the taxation legislation excludes it. 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 periods.