Private ruling: Deductions - parking expenses
Published: May 2012
Ruling period: Year ended 30 June 2012
Date scheme commenced: 1 July 2011

Ruling: Q1: Can you claim a deduction for parking expenses incurred as a result of being temporarily required to use a commercial car park for work? | A1: No.


Relevant legislative provisions: Income Tax Assessment Act 1997 section 8-1. | Income Tax Assessment Act 1997 section 8-5.

Reasons for decision: Summary: Paragraph 8-1(1)(a) of the Income Tax Assessment Act 1997 (ITAA 1997) provides that you may deduct from your assessable income any loss or outgoing to the extent that it is incurred in gaining or producing your assessable income. However, under paragraph 8-1(2)(b) you cannot deduct a loss or outgoing to the extent that it is of a private or domestic nature. Subsection 8-5(1) of the ITAA 1997 provides that you can also deduct from your assessable income an amount that a provision of that Act specifically allows you to deduct. There are no specific provisions within the ITAA 1997 that allow parking expenses to be deducted from your assessable income. Taxation Ruling TR 95/11 deals with the assessability of allowances and reimbursements received by, and deductions for work-related expenses generally claimed by hospitality employees. At paragraph 126, it is stated that a deduction is not allowable for parking fees and tolls incurred when hospitality employees are travelling between their home and their normal place of employment. The cost of that travel is a private expense and parking fees and tolls retain that character. As the parking fees you incur are in relation to travel between your home and your place of work, the expenses are private in nature and a deduction cannot be allowed.

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 temporarily cannot park at your workplace. | During this time, it is necessary to use a commercial car park. | You work in one location, and do not relocate your vehicle throughout the day.