Hello, @HenryNg5 [Removed by moderator]
According to the Australian Taxation Office’s Taxation Ruling TR2021/1, transport expenses incurred by employees when travelling away from home for work are generally deductible if they are incurred in gaining or producing assessable income and are not a consequence of the employee’s choice of where to live.
In the scenario you’ve described, where Isabelle travels from her home in Brisbane to a client location near her company office, the deductibility of her travel expenses would depend on whether the travel to the client location is considered an alternative work location and whether the travel is required as part of her employment duties.
Based on Example 6 in TR2021/1, if Isabelle’s travel to the client location is for work purposes and is not a regular occurrence (i.e., the client location is not considered a regular place of work), then the travel expenses from her home to the client location may be deductible. This is because the travel is directly connected to her work activities and is not merely a result of her residential choice.
The expenses are considered a consequence of producing assessable income when the travel is necessary for Isabelle to carry out her employment duties and is not just a commute between her home and a regular place of work. If the client location requires her to travel specifically for work tasks and is not part of her normal commute, then the expenses are more likely to be seen as incurred in the course of producing income.
It’s important to note that individual circumstances can vary, and the ATO considers various factors when determining the deductibility of transport expenses. It may be beneficial to consult with a tax professional or the ATO directly for advice tailored to Isabelle’s specific situation.
I hope my suggestion is helpful for you.
Best Regard,
angela683
559 views
4 replies