Private ruling: Home to work travel
Published: November 2011
Ruling period: Year ended 30 June 2010 | Year ended 30 June 2011
Date scheme commenced: 1 July 2009

Ruling: Q1: Are you entitled to a deduction for travel to and from City B, accommodation overnight in City B, transfer from airport to the hotel and other incidentals? | A1: No.


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 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). However, there are situations where it has been accepted that travel by employees from home to work is deductible. Taxation Ruling IT 2543 summarises these situations as follows: (a) the taxpayer's home constitutes a place of employment and travel is between two places of employment or business; (b) the taxpayer's employment can be construed as having commenced before or at the time of leaving home; (c) the taxpayer has to transport by vehicle bulky equipment necessary for employment; (d) the taxpayer's employment is inherently of an itinerant nature; (e) the taxpayer is required to break his or her normal journey to perform employment duties (other than including incidental duties such as collecting newspapers, mail, etc.) on the way from home to the usual place of employment, or from the place of employment to home. Your situation does not correspond with any of the above situations. In your case, the cost of travel between your home state and City B is not deductible as it is considered to be a private expense.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet. | Relevant facts: You live in City A and work off shore out of City B. | You were hired in City A. | You incur expenses for travel to and from City B, accommodation overnight in City B, transfer from airport to the hotel and other incidentals.