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Edited version of private advice
Authorisation Number: 1052175690432
Date of advice: 9 October 2023
Ruling
Subject: Work related expenses - transporting bulky tools
Question
Are you entitled to a deduction for travel expenses that you incur in carrying equipment and bulky tools between your home and workplace under Section 8-1 of the Income Tax Assessment Act 1997?
Answer
Yes. Section 8-1 of the Income Tax Assessment Act 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 may be allowable for home to work travel if the transport costs can be attributed to the transportation of heavy, bulky, or cumbersome equipment, rather than to private travel between home and work.
In your case the tools or equipment are essential for the performance of your employment duties, they are bulky and transporting the items between home and work is a practical necessity. There are no appropriate storage facilities within your workplace, and you work across multiple work sights.
Accordingly, you are entitled to a deduction for travel between home and work when transporting your tools.
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ending 30 June 20XX
Year ending 30 June 20XX
The scheme commenced on:
1 June 20XX
Relevant facts and circumstances
You are seeking a deduction for travel expenses from your home to the airport.
You live 4 hours away from the airport.
You work offshore in Oil and Gas.
You do not have to live in the city that you depart from to attend your employment.
You have to transport heavy and bulky tools every trip as there is no storage on site and you also work at multiple sites.
You travel frequently to various work locations via air.
You are often called to be present multiple facilities, where each have distinct responsibilities.
You are unable to store your tools at a fixed location as you are not stationed at the same place for consecutive trips.
Your tools are necessary for each journey to ensure the efficient and timely execution of work duties.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1