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This edited version has been archived due to the length of time since original publication.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: 1051442552682

Date of advice: 6 November 2018

Ruling

Subject: Home to work travel expenses

Question

Can you claim a deduction for your home to work travel expenses?

Answer

Yes

This ruling applies for the following periods:

Period ending 30 June 2018

Period ending 22rd October 2018

The scheme commences on:

1 July 2017

Relevant facts and circumstances

This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.

You are employed as a Pilot.

You carry a navigational bag with dimensions of 56cm x 27cm x 38cm. After adding all the items detailed below that you are required to carry, it weighs 17.5kg.

You are required legally and by the company to carry:

When you stay away for four to five nights you use a larger suitcase (64x41x30cm and weighs 16kg). The items you carry in this bag are work shirts, work pants, work socks, work jumper, and other private items.

You occasionally carry your suit bag (60x45x15cm and weighs 4.6 kg) to house your uniform jacket.

It is company policy that you cannot wear uniforms when you’re not on duty.

Your employer does not provide a secure storage area.

You transport the bags in your own car between your home and work and incur expenses relating to this travel.

From this date you are no longer required to carry your Relevant paper Manuals as your employer received approval to use the electronic copy.

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 the earning of exempt income or a provision of the taxation legislation excludes it.

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 the earning of exempt income.

A deduction is generally not allowable for the cost of travel between home and work because the expenses are not considered to be incurred in producing assessable income. These expenses are incurred as a consequence of living in one place and working in another and any expenses incurred to enable a taxpayer to commence their income earning activities are therefore considered private in nature.

Taxation Ruling TR 95/19 discusses deductions for airline employees and states that a deduction is not allowable for the cost of travel including tolls incurred when airline employees are travelling between their home and their normal place of employment. The cost of that travel is a private expense and the tolls therefore have the same private character.

However, there are situations where it has been accepted that travel by employees from home to work is deductible. These situations include:

We consider that you fit into one of these situations. Therefore you are entitled to a deduction for home to work travel for the periods.

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).