Private ruling: Home to work travel
Published: November 2012
Ruling period: Year ended 30 June 2011
Date scheme commenced: 1 July 2010

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 allows a deduction for all losses and outgoings to the extent to which they are incurred in the course of gaining or producing assessable income, but are not allowable to the extent that they are of a capital, private or domestic nature. A deduction is generally not allowable for the cost of travel by an employee between home and their normal workplace as it is considered to be a private expense. The cost of travel between home and work is generally incurred to put the employee in a position to perform duties of employment, rather than in the performance of those duties (see paragraph 77 of Taxation Ruling TR 95/34). However, there are situations where it has been accepted that travel by employees from home to work is deductible. Taxation Ruling IT 2543 summarises these situations as follows: (a) the taxpayer's home constitutes a place of employment and travel is between two places of employment or business; (b) the taxpayer's employment can be construed as having commenced before or at the time of leaving home; (c) the taxpayer has to transport by vehicle bulky equipment necessary for employment; (d) the taxpayer's employment is inherently of an itinerant nature; (e) the taxpayer is required to break his or her normal journey to perform employment duties (other than including incidental duties such as collecting newspapers, mail, etc.) on the way from home to the usual place of employment, or from the place of employment to home. Taxation Ruling TR 95/11 discusses allowable deductions for hospitality industry employees. The Ruling gives an example of Jane who is a chef and takes her knives home with her in a bag at the end of each day. Jane is not considered to be transporting bulky equipment and no deduction is allowed. As with the example of Jane, it is not a relevant consideration in determining the deductibility of the expenses that you must take home the day's takings. Your situation does not correspond with any of the situations in Taxation Ruling IT 2543. Therefore, a deduction is not allowable for your 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. | You are required to take the day's takings home with you at the end of your night shift and hand them over in the morning. | There is no safe place at work to store the takings. | If any of the takings were to go missing, you are liable for the amount.