Private ruling: Home to work travel
Published: November 2014
Ruling period: Year ended 30 June 2014
Date scheme commenced: 1 July 2013

Ruling: Q1: Are you entitled to a deduction for travel between home and work? | A1: Yes.


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) 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 Income tax: employees carrying out itinerant work - deductions, allowances and reimbursements for transport expenses ). However, there are situations where it has been accepted that travel by employees from home to work is deductible. One of these situations is where the transportation of bulky equipment rather than to private travel between home and work. It is accepted that you are required to carry bulky equipment between home and work. Therefore, you are entitled to a deduction for this travel using one of the four methods contained in Division 28 of the ITAA 1997.

Relevant facts: You work as a sole trader who provides services at various locations. | You are required to carry equipment which weight approximately 40 kg. | You cannot leave the equipment at one location as they are needed at each location. | You intend keeping a log book for your travel.