| Disclaimer This edited version has been archived due to the length of time since original publication.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 written advice
Authorisation Number: 1012867051007
Date of advice: 27 August 2015
Ruling
Subject: Travel expenses
Question 1
Are you entitled to a deduction for home to work travel expenses?
Answer
Yes.
This ruling applies for the following period:
Year ended 30 June 2015
The scheme commences on:
1 July 2014
Relevant facts and circumstances
You work in the information technology industry.
Your work is predominantly carried out at client premises.
The majority of the background work and internal reporting is completed at home or from your laptop.
It is the policy of your employer that no employee has a designated desk.
You will attend the office for various sales meetings and reporting to management but this is also largely done via skype, by mobile and via the internet.
You spend approximately 10 hours per week at the office and approximately 20 hours per week at your home office. The remainder of your week is spent visiting clients.
You start your job from home in the mornings before you go out and visit clients and the employer office.
You visit approximately two or three clients a day.
You have a home office that is used solely for your work.
You don't receive a travel allowance.
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.
Generally, expenditure in travelling between a taxpayer's home and place of work is of a private nature and is accordingly excluded as a deduction under section 8-1 of the ITAA 1997.
It is only in certain circumstances, such as your work is of an itinerant nature, you are carrying bulky equipment or, where your home is considered to be a base of operations are you entitled to a deduction for travel to or from your home.
An employee's home may constitute a base of operations if the work is commenced at or before the time of leaving home to travel to work and the responsibility for completing it is not discharged until the taxpayer attends at the work site. Whether an employee's home constitutes a base of operations depends on the nature and the extent of the activities undertaken by the employee at home (Taxation Ruling TR 95/34).
In your case, you carry out a substantial portion of your duties from your home office. Although you are required to travel regularly to visit client premises and to attend meetings, etc at the office, you commence your duties before you leave home. It is due to the nature of your position and the duties you are required to carry out that you are required to travel to client premises and your employers' office.
Due to the nature of the duties that you carry out at home, we consider that your home office constitutes a base of operations.
Accordingly, you are entitled to a deduction under section 8-1 of the ITAA 1997 for the costs incurred to travel between your home office and your other workplaces.