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Edited version of private ruling
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Ruling
Subject: Travel Expenses
Are you entitled to a deduction for travel expenses incurred for travel between your home and your work place?
No.
This ruling applies for the following period
Year ended 2009
Year ended 2010
The scheme commenced on
1 July 2008
Relevant facts
You work in a professional field.
You live and work in Town A.
You were required to undergo further training.
The only venue you could attend to complete this training was at Town B.
You commuted fortnightly from Town A to Town B to work and complete your training course.
Relevant legislative provision
Income Tax Assessment Act 1997 Section 8-1.
Reasons for decision
Section 8-1 of the Income Tax Assessment Act 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.
Certain expenditure is incurred in order to be in a position to be able to derive assessable income, for example unless a person arrives at work it is not possible to derive income. This does not mean that the expenditure is incurred in the course of gaining or producing assessable income. Rather, the expenses are incurred to enable the taxpayer to commence income earning activities (Lunney v. Federal Commissioner of Taxation (1958) 100 CLR 478; (1958) 11 ATD 404; (1958) 7 ATR 166 (Lunney's Case)).
A deduction is, generally, not allowable for the cost of travel by an employee between home and their normal workplace as it is considered to be a private expense. The cost of travel between home and work is generally incurred to put the employee in a position to perform duties, rather than in performance of those duties (see Taxation Ruling TR 95/34).
In your case, you incurred expenses to travel between your home in Town A and Town B in order to attend work and complete your course.
These expenses are a prerequisite to the earning of assessable income. Although your reason for working in Town B was to complete your training course, this does not alter the fact that these expenses are of a private nature and are incurred as a necessary consequence of living in one place and working in another (Lunney's Case). Therefore, they are not incurred in gaining or producing your assessable income and are not deductible.