Edited version of private advice

Authorisation Number: 1052022234895

Date of advice: 18 August 2022

Ruling

Subject: Deductions - work related expenses

Question

Can you claim travel expenses that are incurred in connection to your employment?

Answer

Yes. The travel expenses you have incurred have a direct connection with the earning of your assessable income as your home constitutes a base of operations for carrying out your employment duties. You are also required to transport bulky and sensitive equipment as part of your ongoing employment duties. The costs and outgoings you have incurred are deductible under section 8-1 of the Income Tax Assessment Act 1997, to the extent they have not been reimbursed.

This ruling applies for the following period:

Year ended 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

You have a working from home contract with your employer.

Your base of operations is your home residence due to the nature of your work.

You're required to work at many locations ranging from a close distance, to vast distance from your base of operations.

To conduct your work, you are required to carry bulky and specialty equipment as well as various chemicals with you in your vehicle that cannot be easily be transported any other way.

You have supplied a logbook for your vehicle that shows the distances and different work locations you attend.

You have supplied a ledger of your travel expenses.

You have sufficient substantiation to back up your travel expense claims

Relevant legislative provisions

Income Tax Assessment Act 1997 section 8-1