Work-related travel deductions

Non-binding edited private advice. This is an edited version of private advice the ATO gave to a specific taxpayer about their own circumstances. You cannot rely on it — it is not binding and provides no protection for anyone else (see PS LA 2008/4). Use it as a guide to the ATO’s thinking, not as authority.

1 Are you entitled to a deduction for petrol used in your boat in relation to the work-related boat travel?

Yes. Question 2 Are you entitled to a deduction for insurance, maintenance and registration on your boat which is used for some work related travel? Answer No. This ruling applies for the following period : Year ended 30 June 20XX The scheme commences on: 1 July 20XX

You need to use a boat to get to where your car is parked. The trips to and from your car are XX minutes by boat. You periodically travel for your work and use your car. Costs are: - Each journey (one way) costs in petrol - Annual Maintenance - Annual Registration - Annual Insurance Assumptions Your home to work travel is otherwise deductible under section 8-1 and according to the principles outlined in Taxation Ruling TR 2021/1 Income tax: when are deductions allowed for employees' transport expenses?

Income Tax Assessment Act 1997 Section 8-1

According to section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997), you can deduct a loss or outgoing if it is incurred in producing your assessable income except where the outgoing is of a capital, private or domestic nature. You use the boat to travel to where your car is parked. You wish to claim petrol expenses for the boat trips which relate to your work. The petrol is an allowable deduction for those boat trips which relate to your work only. The costs of insurance, registration and maintenance are not deductible as your boat is held predominantly for private purposes. These annual costs do not have sufficient connection to your work-related activities.