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Edited version of private advice

Authorisation Number: 1052153554757

Date of advice: 11 August 2023

Ruling

Subject: Work- related travel expenses

Question

Are you eligible to claim a deduction for work-related travel expenses?

Answer

Yes

Question 2:

Are you able to claim your home to work travel in accordance with section 8-1 of the Income Tax Assessment Act (ITAA) 1997 for the transport of bulky tools from home to your worksite?

Answer

Yes. Your travel expenses are deductible, as it is accepted the equipment meets the requirements detailed in Taxation Ruling TR 95/19 Income tax: airline industry employees - allowances, reimbursements and work-related deductions. Further information about travel expenses can be found by searching 'QC 72125' on ato.gov.au

This ruling applies for the following period:

Year ended 30 June 20XX

The scheme commenced on:

XX November 20XX

Relevant facts and circumstances

You purchased a vehicle with a carrying capacity greater than 1 tonne.

The vehicle was purchased for $X as evidenced by the tax invoice.

Your employer provided a letter stating your vehicle is used for work-related travel that includes long distances.

You have provided a logbook for a period of X months to determine your work-use percentage and attached this as evidence to your application.

You have calculated your work-use percentage as X% based on your trips.

As evidenced by your logbook you primarily travel from your home to a regular work site and back. You occasionally travel to additional work sites in a day.

You use the vehicle to transport bulky tools and equipment to and from your workplaces. The vehicle load is in excess of 25 kilos.

The bulky tools and equipment include:

•                     2 steel toolboxes each containing hand and power tools and safety equipment

•                     a power washer

•                     cleaning chemicals

•                     grease and paint

Your employer does not provide a secure storage area.

You have calculated depreciation for the vehicle and included a depreciation worksheet.

You have incurred expenses in the 20XX financial year including:

•                     loan interest

•                     insurance

•                     repairs and maintenance costs.

Fuel costs are reimbursed by your employer.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1

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