Edited version of private advice

Authorisation Number: 1051783727530

Date of advice: 8 December 2020

Ruling

Subject: Work related vehicle expenses

Question

Are you able to claim your home to work travel in accordance with section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) as travelling between co-existing work locations?

Answer

Yes. You meet the requirements within Draft Taxation Ruling TR 2017/D6 Income tax and fringe benefits tax: when are deductions allowed for employees' travel expenses? for your home office to be considered a co-existing work location.

This ruling applies for the following periods:

Year ended 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

You are a registered nurse.

You provide occupational rehabilitation services to clients at multiple different locations.

You use your own car to travel to your appointments and/or meetings.

Your clients often require repeat services therefore you travel to the same region regularly however on occasion you will meet with new clients also within the same region.

Some days you will travel to multiple locations.

Your travel and preparation of documents at home has increased since COVID 19 restrictions have been implemented.

You travel your employer's office location approximately one day every month.

You receive a travel and work-from-home allowances.

You have a dedicated area set up within your home as your home office.

You will be claiming a deduction for the actual cost of running your home office in your income tax return.

On occasion you perform the following duties at home before traveling to the multiple locations and after arriving home from the locations you travelled to that day:

•         Computer-based administrative duties including writing reports and documents,

•         Compiling training presentations,

•         Making and receiving telephone calls,

•         Sending and receiving emails,

•         Participating in video-based training sessions,

•         Preparing, delivering and participating in training,

•         Conversing with your employer's customers/clients,

•         Performing tasks that your employer charges the clients for accordingly.

You have supplied a letter from your employer which states:

From XXXX your primary, and expected workplace, has been her home.

You have resigned to your current employer effective from XXXX.

Your new employment commences from XXXX.

In your new employment you will perform the same duties and still be required to travel to continue consulting with the same clients.

Your travel with your new employer travel will be reimbursed at the ATO km rate and you will not be in receipt of a motor vehicle allowance.

You travel more than XXXX kilometres in a financial year.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1

Income Tax Assessment Act 1997 section 25-100