Deductibility of Employee Transport Expenses (3) – Key Principles of TR 2019/D7

Understanding ATO's TR 2019/D7 on Travel Expenses

The ATO's TR 2019/D7 provides guidelines on when employees can deduct travel costs in various situations:

1. Regular Commute: Travel between home and a usual workplace.
2. Alternative Work Location: Travel between home and a different work site.
3. Transit Points: Travel between home and a transit location.
4. Travel Between Workplaces: Travel between different work locations, excluding home.

Criteria for Deductibility

To deduct travel costs, the ATO requires a clear link between incurring expenses and earning income. Factors indicating this link include:

• Travel during work hours or under employer's direction.
• Travel aligns with job duties as per contract or common law.
• Travel is necessary for work demands or requested by the employer.

Application of TR 2019/D7

This discussion focuses on how TR 2019/D7 applies to these scenarios. It's important to note that these principles reflect the ATO's current stance and may change upon finalizing the ruling.

Understanding these guidelines helps employees determine when they can claim travel expenses and stay compliant with tax regulations.

Should you have any questions or need assistance, feel free to reach out to                            Tax Ideas Accountants & Advisers at +61 2 83181545 or book an appointment through our live calendar.

• Deductibility of Employee Transport Expenses (1)
• Deductibility of Employee Transport Expenses (2) – General Deduction Principles
• Deductibility of Employee Transport Expenses (4) – Between Home and a Regular Place of Work
• Deductibility of Employee Transport Expenses (5) – Geographically Distant Places of Work
• Deductibility of Employee Transport Expenses (6) – Changing Regular Place of Work
• Deductibility of Employee Transport Expenses (7) – Exceptions
• Deductibility of Employee Transport Expenses (8) – Alternative Work Location
• Deductibility of Employee Transport Expenses (9) – Between Home and a ‘Transit Point’