You can claim a deduction for parking fees and tolls you incur when you use your car or other vehicle for work-related purposes.
You can't claim a deduction for parking at or near a regular place of work. You also can't claim a deduction for tolls you incur for trips between your home and work. These are private expenses.
Example: parking on work-related trip
Karlyn is a trainee lawyer. She has to rush some legal documents to the court before it closes for the day. Karlyn drives from the office to the court. She parks directly in front of the court and pays a fee for parking, which her employer does not reimburse.
Karlyn can claim the cost of the car parking as a deduction because her trip from the office to the court is work-related.End of example
Example: tolls and parking on trip from home to work
Carissa works in the city centre. There is no parking for employees in her building, so Carissa pays for car parking nearby.
When Carissa is running late for work she takes a quicker route and incurs a toll.
Carissa can't claim a deduction for the cost of:
- parking near her regular place of work
- the occasional tolls when driving between her home and her regular place of work.
If you use your own motor vehicle in the course of your employment and you're involved in an accident that causes damage to another vehicle, you may be able to claim a deduction for:
- the costs you incur to repair your vehicle
- damages or compensation for the damage to the other vehicle if you are liable.
Generally, you 'incur' an expense when you either pay it or are liable to pay. For more information, see TR 97/7 Income tax: section 8-1 – meaning of 'incurred' – timing of deductions.
You can't claim a deduction for the cost to get or renew your drivers licence, even if you must have it as a condition of employment. This is a private expense.
You can claim a deduction for additional costs you incur to get a special licence or condition on your licence to perform your work duties. For example, you can claim the cost you incur to get a heavy vehicle permit.
Example: special licence
Rhonda works on a sugar cane farm. She must operate heavy machinery to carry out her employment duties. To operate some of the machinery she needs a driver's licence and a heavy vehicle permit. Her driver's licence renewal costs her $45 per year and it costs $73 to apply for the heavy vehicle permit.
The $45 to renew her licence is not deductible because it is a private expense. The cost of the heavy vehicle permit ($73) is deductible as it is an additional expense she incurs that directly relates to her employment duties, and is not a private expense.End of example
You can't claim a deduction for any fines you get when you travel to work or during work. This includes parking and speeding fines or penalties.
Example: parking fine at work
Warren's employment duties often require him to drive from the office where he works to various building sites.
On a couple of occasions when Warren has been running late, he has parked in a loading zone and received a parking fine.
Warren can't claim a deduction for the parking fines. It doesn't matter that he is working at the time he is issued with the fine.End of example