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This edited version has been archived due to the length of time since original publication.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: 1012759522495

Ruling

Subject: Car parking expenses

Question

Are you entitled to a deduction for your car parking expenses?

Answer

No.

This ruling applies for the following periods:

Year ended 30 June 2014

Year ended 30 June 2015

The scheme commences on:

1 July 2013

Relevant facts and circumstances

You are an employee.

You require a large number of tools in your employment.

You keep your tools in your vehicle as there is no safe place to store them at your workplace.

You return to your vehicle during the day to access your tools.

You park your car at a car park in the vicinity of your workplace for more than four hours per day.

Relevant legislative provisions

Income Tax Assessment Act 1997 Section 8-1.

Income Tax Assessment Act 1936 Section 51AGA.

Fringe Benefits Tax Assessment Act 1986 Section 136.

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.

Section 51AGA of the Income Tax Assessment Act 1936 specifically deals with the deductibility of car parking expenses and provides that a deduction will not be allowed to an employee for car parking expenses incurred on a particular day if, on that same day:

Section 136 of the Fringe Benefit Tax Assessment Act 1986 provides that primary place of employment means the employer's business premises, or associated premises, from which or at which the employee performs duties of his or her employment. This section also provides that daylight period means so much of a period of time as occurs between 7.00am and 7.00pm on the same day.

All periods of parking between 7am and 7pm must be added together to determine whether the four-hour threshold is met. If employees regularly leave and return to their primary place of employment during a day, all the periods must be aggregated to determine whether the total duration of parking exceeds four hours on that day. Any part of a period outside 7am or 7pm will be ignored with only the time during those hours being counted.

In your case, you drive your car from home to a car park in the vicinity of your worksite and park there for more than four hours per day. Consequently, you satisfy the conditions of section 51AGA of the ITAA 1936, and you are therefore prevented from claiming a deduction for the parking fees under section 8-1 of the ITAA 1997.

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).