Private ruling: Deduction for travel expenses
Published: October 2013
Ruling period: Year ended 30 June 2013
Date scheme commenced: 1 July 2012

Ruling: Q1: Are you entitled to a deduction for travel expenses? | A1: No.

Relevant facts and circumstances: You live at X. You usually work from a base depot in X. You are also required to work at depots in X and X. You travel between home and each location separately. You incur travel expenses including toll fees when travelling to X. You keep a log book of all your trips to these work locations.

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) generally allows a deduction for any loss or outgoing to the extent that it is incurred in gaining or producing assessable income. It is settled law that expenses of travelling to work are not deductible as they are not incurred in gaining the assessable income, but as a pre-requisite to gaining assessable income ( Lunney v FC of T; Hayley v FC of T (1958) 100 CLR 478). In considering the deductibility of travel expenses, a distinction is made between travel to work and travel on work. It is only if the duties of the job require a taxpayer to travel that the taxpayer's expenses can be deducted ( Taylor v Provan 1975 AC 194). In your case you are travelling to work and the expenditure incurred is not an allowable deduction under section 8-1 of the ITAA 1997. Furthermore your travel expenses are as a result of living in one place and working in another, and so are private in nature. It should be noted that the significant distance travelled is irrelevant as the law does not differentiate between, nor apply on the basis of, distances travelled.