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Edited version of your written advice
Authorisation Number: 1051191661738
Date of advice: 17 February 2017
Ruling
Subject: Travel Expenses - Home to Work
Question
Are you entitled to a deduction for travel between your home and place of work?
Answer
No
This ruling applies for the following periods:
Financial Year ended 30 June 201X
The scheme commences on:
April 201X
Relevant facts and circumstances
● You have a disability.
● As a result of this disease you have impaired mobility and use a mobility aid.
● You are going to trial returning to full time work.
● Your place of work is in a fixed location and you are not required to travel in the course of carrying out your employment duties.
● You are unable to use public transport as a result of your disability and you propose to travel to and from work in a wheelchair accessible taxi van.
Relevant legislative provisions
Income Tax Assessment Act 1997 (ITAA 1997) Section 8-1
Reasons for decision
A deduction is generally not allowable for the cost of travel between home and work as it is considered to be a private expense. Expenditure incurred in travelling to work is a prerequisite to the earning of assessable income rather than being incurred in the course of producing that income. That is, the duties of an employee do not commence until the arrival at a place of work and will cease upon departure from work. The essential character of the expenditure is of a private or domestic nature, relating to personal and living expenses and therefore not an allowable deduction. (Lunney v FCT (1958) 100 CLR 478).
There are some situations where it has been accepted that home to work travel by employees is deductible. These are summarised in Taxation Ruling IT 2543 as follows;
● the taxpayer's employment is inherently of an itinerant nature;
● the taxpayer's home constitutes a place of employment and travel is between two places of employment or business;
● the taxpayer's employment can be construed as having commenced before or at the time of leaving home;
● the taxpayer has to transport by vehicle bulky equipment necessary for employment; or
● the taxpayer is required to break his or her normal journey to perform employment duties (other than including incidental duties such as collecting newspapers, mail, etc.) on the way from home to the usual place of employment, or from the place of employment to home.
It has been determined that these factors do not apply to your situation. In view of the above, we consider that your travel expenses were not incurred in gaining or producing your assessable income. The essential character of the expense is private and therefore is not deductible under section 8-1 of the ITAA 1997.
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