Claiming Petrol | 2023 Gotax

Tax Deductions for Travel Between Home and Work

The general rule is that travel expenses between your home and your regular place of work are considered private expenses and are not deductible. The main reason is that for an expense to be tax deductible it must be iincurred in earning your income.  You don't begin to earn income until you get to the front door of your place of work.  Therefore it's a cost you have incurred BEFORE you have started to earn your income.

However, there are some exceptions where you can claim these expenses:

Carrying Bulky Tools or Equipment

If you need to carry bulky tools or equipment that are essential for your work and you can’t leave them at your workplace, you can claim the cost of trips between your home and your workplace.

Home as a Base of Employment

If your home is a base of employment, meaning you start your work at home and then travel to a workplace to continue your work for the same employer, you can claim these travel expenses.

Shifting Places of Employment

If you regularly work at more than one site each day before returning home, you can claim the cost of trips between these sites and your home.

Record Keeping Tips

Keeping accurate records is crucial for claiming these deductions. You should have invoices, receipts, or some other type of written evidence of any expenses. Electronic records are also acceptable, such as credit card or bank statements you download or access from the lender’s or bank’s website. It’s recommended to maintain your records for at least three years from the date you file your return.

Deduction Grabber App

To make record keeping easier, consider using the Deduction Grabber App. This free app allows you to snap a photo of your tax receipts and record your tax expenses as soon as you make them. It also includes an ATO compliant tax Motor Vehicle Logbook.

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