Edited version of your written advice

Authorisation Number: 1012692385710

Ruling

Subject: Travel

Question

Are you entitled to a deduction for home to work travel?

Answer

No.

This ruling applies for the following period

Year ended 30 June 2014

The scheme commenced on

1 July 2013

Relevant facts

You are a professional.

You work on a roster at a number of different locations although the roster changes almost every day after it is made and can change on the way to work, when you get to work or after you has been at a location through the day.

All of your equipment is provided by your employer and is carried in four bags.

The bags when set together weigh less than 27 kilograms.

Because of the uncertainty of your location, you cannot leave the equipment at any site as you may not return there the next day.

Relevant legislative provisions

Income Tax Assessment Act 1997 Section 8-1

Reasons for decision

Section 8-1 of the Income Tax Assessment Act 1997 deals with general deductions and allows a deduction for all losses or outgoings to the extent to which they are incurred in gaining or producing assessable income, except to the extent that they are outgoings of a capital, private or domestic nature.

Generally the expenses of travel to and from work are not deductible. This is either because such expenditure is private in nature, or because it is not an expense incurred in gaining or producing assessable income.

However, the Commissioner accepts that expenses incurred by employees in travelling to and from work are deductible in certain circumstances. One of the exceptions to the general view is where the employee is required to transport bulky equipment necessary for employment.

Paragraphs 63 and 64 of Taxation Ruling TR 95/34 Income tax: employees carrying out itinerant work - deductions, allowances and reimbursements for transport expenses, explain that a deduction may be allowed in circumstances where:

• the cost can be attributed to the transportation of bulky equipment rather than to private travel between home and work

• it is essential to transport the equipment to and from work and it is not done as a matter of convenience or personal choice, and

• there are no secure facilities available for storage of the bulky equipment at the work place.

In Crestani v. FC of T 98 ATC 2219; (1998) 40 ATR 1037, a toolbox which weighed 27 kilograms was considered as bulky, in the sense of cumbersome, and the transport cost was attributable to the transportation of such bulky equipment rather than private travel between home and work. The employer did not provide a secure storage area for the toolbox and the use of public transport was not a viable option.

You are required to carry a number of bags containing all of your equipment which weigh less than 27 kilograms.

We accept that you do not transport your equipment to and from work as a matter of convenience and the issue of secure storage facilities is not relevant in your situation because of the need for it to be available regardless of which station you work at. Therefore, the only consideration that needs to be addressed is whether the equipment is considered to be bulky.

We accept that the bags may be awkward to carry. However, when viewing the bags together and considering their combined weight and size, it is not considered that they are sufficiently heavy or cumbersome to change the nature of the travel. You are therefore not entitled to a deduction for home to work travel.