Edited version of private advice

Authorisation Number: 1051903769852

Date of advice: 6 October 2021

Ruling

Subject: Work related travel expenses

Question

Can you claim a deduction for the cost of travel to your place of employment, where your home is your place of work?

Answer

No. Your home is not considered your place of employment. Therefore, you cannot claim a deduction for work related travel expenses from your home to your place of employment.

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 not generally allowable for the cost of travel between home and work as it is considered a private expense. Expenditure incurred in travelling to work is a prerequisite to the earning of assessable income rather than being incurred in the course of producing that income.

Taxation Ruling TR 95/14 Income tax: employee teachers - allowances, reimbursements and work-related deductions paragraph 151 states:

"If an employee teacher lives at one of the places of employment or business, a deduction may not be allowable as the travel is between home and work. It is necessary to establish whether the income earning activity carried on at the person's home qualifies the home as a place of employment or business. The fact that a room in the employee teacher's home is used in association with employment or business conducted elsewhere will not be sufficient to establish entitlement to a deduction for travel between two places of work (IT 2199)"

Therefore, the travel expenses incurred are private and domestic in nature and not an allowable deduction under section 8-1 ITAA 1997.

For more information on Transport expenses - trips between home and work and between workplaces, please visit ato.gov.au and enter the reference QC 31983.

This ruling applies for the following period:

Year ended 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

You advised:

You are employed as a high school teacher working for a xxxx school.

You are employed on a XX full time equivalent basis and work X days per week.

You work from home X days per week.

You are required to attend the school X days per week for meetings and to participate in professional activities to fulfill your duties.

You are paid a full X hour day salary, although the meetings do not go for the entire day.

The school is approximately XXX km from your home.

When travelling to the school, you incur the costs of fuel, tolls and wear and tear to your personal vehicle.

You have paid for overnight accommodation on XX occasions where you have attended meetings over X consecutive days.

You are not reimbursed by your employer for the cost of travel.

You have an area in your home dedicated to your employment.

The school agreed to the work from home arrangement upon commencement of the role.

You advised that the school would provide a space for you on site if required.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1