| Disclaimer This edited version has been archived due to the length of time since original publication.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 private ruling
Authorisation Number: 1011911442162
This edited version of your ruling will be published in the public Register of private binding rulings after 28 days from the issue date of the ruling. The attached private rulings fact sheet has more information.
Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. Contact us at the address given in the fact sheet if you have any concerns.
Ruling
Subject: Travel expenses
Question
Are you entitled to a deduction for travel expenses incurred travelling to and from work to transport your knives, steel and stone?
Answer
No.
This ruling applies for the following period
Year ended 30 June 2011
The scheme commenced on
1 July 2010
Relevant facts
You use knives in carrying out your work duties.
You carry your knives, steel and stone to and from work daily, so that you can sharpen your knives at home.
Your employer supplies lockers to store your knives; however you prefer to take them home each night.
Your work carries out random locker inspections as well as cleaning lockers one night a month (therefore you have to have your locker empty at these times in any event).
You use your own vehicle as you cannot carry these knives on public transport.
Relevant legislative provisions
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, or relate to the earning of exempt income.
As a general rule, expenditure travelling to and from work is not deductible as the expenses are not incurred in the course of gaining assessable income. Rather, the expenses are incurred to enable the taxpayer to commence income earning activities. The travel expenses are generally considered private in nature.
However, a deduction may be allowable if the transport costs can be attributed to the transportation of bulky equipment.
Taxation Ruling TR 95/11, which relates to hospitality industry employees, provides the example of a chef who takes their knives home at the end of each day. The chef is not considered to be transporting bulky equipment and is therefore not entitled to a deduction.
Similarly, in your situation, your knives, steel and stone are not considered bulky. You are therefore not entitled to claim a deduction for your motor vehicle expenses incurred in transporting the knives, steel and stone to and from work.
Further Information
The illegality of carrying knives on public transport, and consequently requiring you to transport them in your car, is not a relevant consideration in determining the deductibility of your car expenses.