Travel expenses – how to claim

Travel expenses: Travel between home and work

Regarding Travel expenses, it is the ATO opinion and guidelines that if you travel between your home and a place of work (and vice versa) – this expenses is not in the course of working, and, therefore, is not deductible. (see more discussion at the bottom of the page).

So how can you claim Travel expenses after all? for that you will need to check the exception to the rule here:

Uncommon workplace:

This is not your day to day place of work, and as such is subject to different interpretation of the TAX Law:

  • Trips between your place of work to clients place of work and the return home or back to the office; the reasoning: when you go to a client, this is not your office, so you can say that you had an extra expense in order for you to Travel expensesget there.  
  • Traveling from your home to a client place of work and going back either home or to your place of work; same as above. 
  • If you work at 2 jobs, the trip between one place of work to the other place of work (only this specific trip). 

While you are on the way:

Here we must pay attention to the capacity of the task undertook on the way. so what will be allowed is only part of the trip, but we must be able to show the ATO that the task was significant, just dropping by is not enough unless we have to go extra just for that. please see Miscellaneous Taxation Ruling 2027

When you work from home – the use of home office:

  • This means that every trip will start from your home, so basically it is allowed. 
  • If you are changing from one work to another and on your way to different locations, you can claim the  travel between places of work. same reasoning as above. please see Taxation Ruling 1995/34 

If you Transport bulky equipment:

You may claim the travel from home to work if and only if you need to move an equipment that otherwise can’t be stored on workplace premises and you need this for your work (like tools). 

The general guideline is more than 20kg, but there are more factors that come into play like if it is really necessary, what type, use the ATO website to read the full document. 

Transporting bulky tools and equipment: