Deductibility of Employee Transport Expenses (7) – Exceptions

Navigating Deductions for Travel Between Home and Work: Exceptions to the Rule

Understanding when travel expenses between home and a regular work location are deductible can be complex. Generally, these costs are not deductible because they are considered a necessary prerequisite to starting work and are private in nature. However, there are specific exceptions outlined in TR 2019/D7, which are crucial for certain employees.

Exceptions to the General Rule

1. On Call Employees For employees who are on call:

• Travel expenses may be deductible if the employee's work duties substantively start at home and they are required to travel to their regular workplace to complete these duties.
• The travel must be a necessary part of their employment, not just a normal commute that would have occurred regardless of on-call status.
• It's important to differentiate between 'on call' and 'standby' duties, as standby travel is typically not deductible since work only commences upon arriving at the workplace.

2. Transporting Bulky Equipment For employees who need to transport bulky equipment:

• Deductions are allowed if the transport of the equipment is essential for work duties, not just for personal convenience.
• The equipment must be large and necessary, making it impractical to transport by means other than a private vehicle.
• There must be a practical necessity for transporting the equipment daily, either due to the lack of a secure storage area at work or because the equipment is used at various sites.

Further Guidance

For more detailed information on exceptions related to itinerant work, TR 95/34 should be referenced, as it offers comprehensive rules regarding home to work travel deductions under different circumstances.

Need Help?

Understanding these exceptions and applying them to your specific situation can be challenging. If you have any questions or need advice on how to handle your travel deductions, please contact Tax Ideas Accountants & Advisers at +61 2 83181545 or book an appointment through our live calendar.