How can I claim my Travel between home and work?
One of the odder concepts to come from the common law system in Australia is the distinction made regarding the validity of claiming travel expenses between work and home. The decision handed down in Lunney & Hayley v FC of T (1958) passed the precedent that travel between home and work is not work-related, but personal in nature.
The implication of this is that taxpayers are unable to claim a deduction for their daily commutes to and from work.
While it can be hard to understand the logic behind this, it is however the standard which the ATO uses when assessing the validity of your deductions.
There are however specific circumstances where expenses for travel between work and home can be allowed as a deduction.
1.Carrying bulky equipment or tools which is required by your work
It’s hard to carry a cement mixer, or an extension ladder on normal public transport. You can claim travel expenses between work and home if you have bulky equipment is 20kg or heavier, or difficult to transport, and cannot be kept at the work site.
2.Home is a base of employment
If you operate your business from home, you can claim travel between home and a work-site. This is because travel between two income producing work sites can be claimed normally. However, your home needs to have the character of a business and is more than a side office for the occasional day of work overload.
If you have a home-based business, and travel to a different employer you cannot claim this travel.
3.You are an Itinerant Worker
To be classified as an itinerant worker, you need to:
Travel is fundamental to your work (as the very nature of the work, not out of convenience).
Have a web of work sites (ie more than one location)
Continually travel between these work sites
Home is a base of operations
Have uncertainty as to where your next work site will be