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Ruling
Subject: Motor vehicle expenses
Question
Are you entitled to a deduction for motor vehicle expenses incurred for travel between your place of employment and your home address when you carry out work related duties at home?
Answer
No.
This ruling applies for the following periods:
Year ended 30 June 2011
Year ended 30 June 2012
Year ended 30 June 2013
Year ended 30 June 2014
The scheme commences on:
1 July 2010
Relevant facts and circumstances
You are employed as a secondary school teacher.
You regularly transport school work from your place of employment to your home address.
The work is to facilitate in the preparation of lessons, to assess and mark student work and to prepare and compile student reports and any other administration task that you are required to undertake to fulfil your duties as a teacher.
To perform these duties at home you transport home a laptop computer.
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 earning of exempt income.
Taxation Ruling TR 95/14 examines the deductibility of certain expenses incurred by teachers. The Commissioner's view expressed in TR 95/14 is that generally a deduction is not allowable under section 8-1 of the ITAA 1997 for the cost of travel between home and a normal workplace as it is considered to be a private expense.
Paragraph 138 of TR 95/14 states the following in regards transportation of items between home and work for the purpose of completing paperwork at home:
An employee teacher is not entitled to a deduction for transportation costs if, as a matter of convenience, work is performed at home and items such as papers, books and material (whether bulky or not) are transported between home and work for that purpose. In Case Q1, 83 ATC 1; (1983) 26 CTBR (NS) Case 65, the use of a car by a school principal in these circumstances was treated as a private use as it was travel from home to the place of employment.
In your case you transport school work and a laptop computer between your place of employment and your home address. These materials are transported to enable you to perform various tasks at home. The motor vehicle expenses associated with this travel are considered a private expense. Therefore, you are not entitled to a deduction for the expenses under section 8-1 of the ITAA 1997.