Disclaimer
This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of your written advice

Authorisation Number: 1012719947907

Ruling

Subject: Home to work travel

Question

Are you entitled to a deduction for travel between home and your usual work or casual activities?

Answer

No.

This ruling applies for the following period

Year ended 30 June 2014

Year ended 30 June 2015

Year ended 30 June 2016

Year ended 30 June 2017

Year ended 30 June 2018

The scheme commenced on

The scheme has commenced

Relevant facts

You are a specialist professional.

You work at several sites in a capital city and several regional country sites.

One position is permanent part-time.

The other positions you hold are as a casual.

The casual work is offered in groups of four to seven days in a row.

The employers provide accommodation for the days you are rostered on and in some cases, you are provided with a car for personal and work use.

The employers pay you an amount for travel which is rolled into your gross salary.

You are required to carry an equipment bag, several text books, a laptop computer and accessories and personal clothing and effects.

Relevant legislative provisions

Income Tax Assessment Act 1997 Section 8-1

Reasons for decision

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 gaining or producing assessable income, except where the outgoings are of a capital, private or domestic nature, or relate to the earning of exempt income.

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. Taxation Ruling IT 2543 Income Tax : Transport Allowances : Deductibility Of Expenses Incurred In Travelling Between Home And Work, summarises these situations as follows: 

In your case, we accept that you have a large number of locations where you perform your duties. However, the only situation that may apply in your circumstances is whether your equipment is considered to be bulky.

The question of what constitutes bulky equipment must be considered according to the individual circumstances in each case. To establish if the equipment you carry is bulky, consideration must be given to its size and weight. 

In Crestani v. FC of T 98 ATC 2219; (1998) 40 ATR 1037, a toolbox which measured 57 x 28 x 25 centimetres and weighed 27 kilograms was considered as bulky, in the sense of cumbersome, and the transport cost was attributable to the transportation of such bulky equipment rather than private travel between home and work. The employer did not provide a secure storage area for the toolbox and the use of public transport was not a viable option.

In your case, while we accept that you have to carry your clothing and personal effects, these are not considered to be equipment for the purposes of determining bulky equipment. It is considered that the equipment bag, text books and computer equipment are not sufficiently bulky to change the nature of your travel.

Therefore, you are not entitled to a deduction for home to work travel.


Copyright notice

© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).