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Edited version of your private ruling
Authorisation Number: 1012566112774
Ruling
Subject: Self Education-Travel
Question
Are you entitled to a deduction for travel expenses between home and your usual workplace, whilst completing a university course by correspondence?
Answer
No
This ruling applies for the following period
Year ended 30 June 2013
The scheme commenced on
1 July 2012
Relevant facts
You are currently undergoing a course of study.
This course is undertaken remotely via the internet through an overseas university.
There is no specific location in Australia provided by this university for you to attend and undertake this course.
To undertake your work activities, you travel from your home to your usual workplace in the morning and then from your usual workplace to home in the afternoon.
You travel to and from your usual workplace after dinner in the evening and also travel to and from your usual workplace every weekend to carry out your study course.
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 the earning of exempt income.
A deduction is generally not allowable for the cost of travel between home and work because the expenses are not considered to be incurred in producing assessable income. Rather, the expenses are incurred to enable you to commence your income earning activities and are therefore considered private in nature.
Generally self-education expenses are deductible under section 8-1 of the ITAA 1997 where these expenses have a necessary connection with the production of your assessable income. If you are entitled to a deduction, expenses are deductible for travel between your:
· home and place of education
· place of education and home
· workplace and place of education, and
· place of education and workplace.
Taxation Ruling TR 98/9 at paragraph 134 discusses a place of education as follows:
A place of education is an institution or organisation, or a dedicated part of it, whose primary function is to provide systematic instruction, teaching or schooling in a subject, skill or competency. This view is supported by the decision of the No 2 Board of Review in Case M11 80 ATC 78; 23 CTBR (NS) Case 97. There, L C Voumard (Member) relied on Barry v. Hughes 1 All ER 537, where it was said that an educational establishment was one whose primary function was that of education.
In your case, although you study at your workplace, your workplace is not considered to be a place of education. Therefore your car expenses for home to work travel are private in nature and are not deductible.