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Edited version of your written advice
Authorisation Number: 1012745592198
Ruling
Subject: Travel expenses
Question
Are you entitled to claim a deduction for the car expenses that you incur to travel between your home and workplace?
Answer
No.
This ruling applies for the following periods:
Year ended 30 June 2015
The scheme commences on:
1 July 2014
Relevant facts and circumstances
You are an employee.
You take home files on a regular basis.
Without taking these files home at times it would be difficult to prepare adequately for your meetings.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1
Reasons for decision
Section 8-1 of the Income Tax Assessment Act 1997 (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 nature, or relate to earning of exempt income.
Taxation Ruling TR 95/14 Income tax: employee teachers - allowances, reimbursements and work-related deductions examines the deductibility of certain expenses incurred by teachers. Although you are not a teacher, the same principles will apply.
The Commissioner's view expressed in TR 95/14 is that generally a deduction is not allowable under section 8-1 of the ITAA 1997 for the cost of travel between home and a normal workplace as it is considered to be a private expense.
Paragraph 138 of TR 95/14 states the following in regards transportation of items between home and work for the purpose of completing paperwork at home:
An employee teacher is not entitled to a deduction for transportation costs if, as a matter of convenience, work is performed at home and items such as papers, books and material (whether bulky or not) are transported between home and work for that purpose. In Case Q1, 83 ATC 1; (1983) 26 CTBR (NS) Case 65, the use of a car by a school principal in these circumstances was treated as a private use as it was travel from home to the place of employment.
In your case you take files home to prepare for meetings. Although you view this as a necessity rather than a matter of convenience, the motor vehicle expenses incurred while travelling with these files is still considered a private expense. Therefore, you are not entitled to a deduction for the expenses under section 8-1 of the ITAA 1997.
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