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Ruling
Subject: home to work travel
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 period:
Year ended 30 June 2012
The scheme commences on:
1 July 2011
Relevant facts and circumstances
You are employed as a teacher.
You spend several hours each night preparing materials and classes for the following day.
You then travel to work to implement the prepared materials.
You have kept a record of the days that you have needed to work at home before travelling to your workplace.
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 prepare materials and classes at your home address. You then travel to your workplace to implement the prepared materials. 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.