Private ruling: Deductable t ravel expenses
Date of advice: 14 October 2025
Published: 1 December 2025
Ruling period: DD MM YY
Date scheme commenced: DD MM YY

Ruling: Q1: Are you entitled to claim a deduction under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) for your travel expenses from your home office in City A to your employer's office in City B? | A1: Yes. Your travel expenses are deductible under section 8-1 of the ITAA 1997. Taxation Ruling TR 2021/1 Income tax: when are deductions allowed for employees' transport expenses? explains when an employee can deduct the cost of travel under section 8-1 of the ITAA 1997. Paragraphs 42 and 43 of TR 2021/1 apply to your situation: travelling to a location other than a regular place of work. In your case, your employment contract with XXXX states that your position will be located at your home-based office (in City A). Occasionally, you travel by car (from your home office) to your employer's office in City B to attend meetings. You do not have a dedicated desk at your employer's City B office. Therefore, the travel expenses from your home office in City A to your employer's office in City B are incurred in gaining or producing your assessable are deductible under section 8-1 of the ITAA 1997.

Relevant facts and circumstances: You are employed by XXXX in the role of XXXX. Your employment letter confirms that your position will be located at your home-based office. Your home address is XXXX. In the YYYY financial year you made XX trips from your home office to your employer's office in City B. For some of these trips, you drove to City C (XX kilometres each way) and you park your car for free, then you catch an Uber to the City B office - to save money on tolls and city parking. Another XX times you drove to City D and got a lift with a friend to the City B office (XX kilometres each way). You drive your car that you own. You do not receive a travel allowance and you do not get reimbursed for the travel.

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