Private ruling: Travel expenses
Date of advice: 5 September 2018
Published: November 2018
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to a deduction for your car expenses to travel to appointments under section 8-1 of the ITAA 1997? | A1: Yes. Section 8-1 of the ITAA 1997 allows a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income, except where the outgoings are of a capital, private or domestic in nature, or relate to the earning of exempt income. Payment of your wage is conditional upon attending appointments. Accordingly, your travel expenses are deductible as it is accepted that the expenses have the character of an outgoing incurred in gaining assessable income which meets the requirements detailed in Draft Taxation Ruling TR 2017/D6.

Relevant facts and circumstances: You receive a regular payment as replacement for lost income. You attend medical appointments up to four days a week. You will not be paid unless you attend the appointments.

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