| Disclaimer This edited version has been archived due to the length of time since original publication.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 your private ruling
Authorisation Number: 1012423518736
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. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet.
Ruling
Subject: Work related expenses - travel
Question
Are you entitled to claim a deduction for travel expenses?
Answer
No
This ruling applies for the following periods:
Year ending 30 June 2013
Year ending 30 June 2014
The scheme commences on:
1 July 2012
Relevant facts and circumstances
You work in one part of the state and your home is in another part of the state and your spouse and children live there.
You receive free board in return for boarding duties and travel to your home on weekends and holidays to be with your family.
You will incur costs for between one part of the state where you work and another part of the state where your home is situated.
You do not receive any allowances and your family will join you in the following year.
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.
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 & Hayley v. Federal Commissioner of Taxation (1958) 100 CLR 478; (1958) 11 ATD 404; (1958) 7 AITR 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 incur expenses to travel between your home and your workplace in order to attend work. These expenses are a prerequisite to the earning of assessable income and are not incurred in producing that income. In addition, 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 under section 8-1 of the ITAA 1997.