Private ruling: Work related expenses - travel and computers
Date of advice: 25 February 2026
Published: 20 April 2026
Ruling period: Income year ended 30 June 20YY | Income year ending 30 June 20YY | Income year ending 30 June 20YY | Income year ending 30 June 20YY
Date scheme commenced: 1 July 20YY

Ruling: Q1: Are you entitled to claim a deduction for the travel expenses? | A1: Yes. | Q2: Are you entitled to claim a deduction for computer expenses? | A2: Yes.

Relevant facts and circumstances: For many years you have worked from home running a small business and investing in shares and property. Income from these shares is around $X a year, with $X franking credits. You buy and hold your shares for the long term - there is no share trading. However, you monitor the companies to identify times when it may be prudent to sell or buy. Such buys and sells are at long intervals. The listed companies have Annual General Meetings (AGMs). You travel to attend these AGMs. The cost of travel is around $X. In the 20YY income year you went to several AGMs. You use a computer for work-related tasks. Annually, you incur expenses of approximately $X for internet service provider, repairs and capital expenditure. The capital expenditure is usually minor, like a $X external drive or a $X hub. However, in the 20YY income year you will have higher capital expenditure, for Windows 11 setup, around $X for a computer and a backup, plus migrating the Windows 10 system to the Windows 11 computer. You estimate X% of these expenses are work-related. For the 20YY income year your claim for computer related expenses will be approximately $X. In 20YY it will be between in the $X to $X. You have one investment property, worth around $X. This generates around $X a year in rental income, with expenses of around $X a year and net income of $X. The investment property takes a lot more time than the shares. You contact the property manager and tenant quite a bit. You spend several hours a week managing your shares, the investment property, accounting, tax, research, etc.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 8-1 | Income Tax Assessment Act 1997 Section 40-25

Reasons for decision: Summary: You are entitled to claim a deduction for your work-related travel expenses. You are also entitled to claim a deduction for the work-related proportion of your computer expenses. | Detailed Reasoning - Detailed reasoning: 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 ITAA 1997 prevents it. | Detailed Reasoning - Travel expenses: You may be able to claim travel expense deductions where you need to travel to service your investment portfolio. For example, to consult with a broker or to attend a stock exchange or company meeting. You can claim the full amount of your expenses where the sole purpose of the travel relates to the share investment. Where the travel is mainly for private purposes, only claim the expenses directly related to servicing your portfolio. The expense you incur for the cost of travel to AGMs, which are not capital, private or domestic in nature, are deductible under section 8-1 of the ITAA 1997 in the income year in which you incur the expense. | Detailed Reasoning - Computer expenses: The expenses you incur for your computer (internet service provider, repairs) which are not capital, private or domestic in nature, are deductible under section 8-1 of the ITAA 1997 in the income year in which you incur the expense. For items of capital expenditure, section 40-25 of the ITAA 1997 allows you to deduct an amount equal to the decline in value for an income year of a depreciating asset that you held for any time during the year. Where items you use for work cost: • More than $300 or is part of a set that together cost more than $300 - claim a deduction for the cost over the life of the item (decline in value). • $300 or less - claim an immediate deduction for the whole cost. Under section 8-1 of the ITAA 1997, a deduction is only allowed to the extent it is used for income producing purposes. Where an expense has deductible and non-deductible components, the portion that is deductible needs to be determined. You have stated that in the past you have claimed a percentage of computer expenses which is work-related. Therefore, you are entitled to claim a deduction under section 8-1 of the ITAA 1997 for the work-related percentage of your computer expenses. For more information, go to www.ato.gov.au and search QC72141. This webpage deals with deductions for computers and associated expenditure you use for work. For more information about the decline in value of depreciating assets, search QC104785.