Private ruling: Travel Expenses
Date of advice: 29 November 2016
Published: February 2017
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: A1: Yes

Relevant facts and circumstances: You are a consultant and an accredited educator in a particular industry. You are also a qualified workplace and assessor trainer. You deliver training and assessment of certificate courses. You work from home and advertise your services. You use your car to carry a number of bulky manuals, usually xx of your own training manuals, materials and equipment. You also carry x manuals that comprise of the units for certificates and training equipment for these units and certificates. You use a large suit case to carry your equipment. You carry this suitcase at all times.

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 ) deals with general deductions and allows a deduction for all losses or outgoings to the extent to which they are incurred in gaining or producing assessable income, except to the extent that they are outgoings of a capital, private or domestic nature. Generally a deduction is not allowable for the cost of travel between home and work as it is considered a private expense. The essential purpose of such travel is not to enable a person to derive assessable income. However, a deduction for travel expenses between home and work may be allowed if a person's job is itinerant. Consideration must then be given to Taxation Ruling IT 2199, which states that the travel between two places of employment or business must be for the purpose of engaging in income producing activities. This is of particular importance where one of the places of employment or business is the home of the taxpayer. Difficulty may arise where a taxpayer lives at one of the places of employment or business because it is not in all cases of this nature that an income tax deduction is allowable for the costs of travel between the employment or business carried on at home and another employment or business elsewhere. It is necessary that the income producing activity carried on at the taxpayer's home should constitute an employment or a business. In your case, your home is considered a base of operations and that travel is a fundamental part of your work. You regularly attend various clients' and other sites to carry out your duties. There is no single 'workplace' which could be considered your fixed place of work Therefore, it is considered the cost of travel from home to your work locations is deductible under section 8-1 of the ITAA 1997.

Subject: Travel Expenses: Are you entitled to a deduction for the cost of travel between your home and various workplaces?