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Travel cost deduction - work from home (new office) to city office

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Newbie

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With the onset of COVID-19, staff are now working remotely from home and not in the city office.

 

If we're required to travel from home (new office) to our city office by taxi or drive and park to undertake work related activities which can't be done at home office, is the taxi or parking expense deductible in the staff's tax return?  Can the travel be considered where "home was a base of employment – you're required to start your work at home then travel to a workplace to continue your work for the same employer"?  This is type of travel is only envisaged during COVID-19 period.

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Devotee

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I suspect the ATO will have some official guidance on this eventually (they have more pressing issues to work out at the moment).

 

On one hand, your office is still your office - so travel from home to there wouldn't be deductible. On the other you have no option but to work from home. I can see both sides of the argument and it would be interesting to get the ATO's official position.

 

I would suggest just be patient. The ATO will give out guidance before we need to lodge our 2020 tax returns.

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Best answer

Devotee

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I suspect the ATO will have some official guidance on this eventually (they have more pressing issues to work out at the moment).

 

On one hand, your office is still your office - so travel from home to there wouldn't be deductible. On the other you have no option but to work from home. I can see both sides of the argument and it would be interesting to get the ATO's official position.

 

I would suggest just be patient. The ATO will give out guidance before we need to lodge our 2020 tax returns.

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ATO Certified

Community Manager

Replies 1

Hi @Alow

 

Fantastic question.

 

Currently one of the criteria for claiming travel between home and word is;

 

  • if your home was a base of employment – you're required to start your work at home then travel to a workplace to continue your work for the same employer

If no official guidance is provided in the the future you would need to self assess if this applies to you.

 

We would suggest you check out the page Travel between home and work and between workplaces   to work out what substantiation you are required to keep.

 

KylieS

 

 

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Initiate

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Thank you Kylie